Evaluating Generator Rental and Purchase Options
Many factors are in the equation when acquiring a commercial or industrial power generator. Once the sizing and style of the generator are determined, the next step is often deciding if a rental or purchase is the best option. This article provides an overview of factors to consider when renting vs. purchasing a generator and includes some of the pros and cons most businesses and organizations have to consider when making this decision. Since Generator Source buys, sells, and rents generators, this is a common but relatively complex question our staff helps many customers wade through.
Advantages of Renting a Generator
Portable Rental Generators
The most obvious benefit of renting a generator is that renting requires a fraction of the start-up cost when compared to a purchase. Some additional rental benefits are:
- Lower Initial Cost than Buying
- Available on Short Notice
- No Maintenance & Limited Downtime Risk
- Generator Size Flexibility
- Generator Configuration Options
- No Installation Costs
- Rent to Own Options
- Time of Use
It is often a good idea to calculate the rental cost against the purchase cost. When the cost of the generator rental approaches the purchase cost, a rental could be eliminated in favor of a purchase. However, factors in the above list can add to the deliberation and further complicate the issue.
Long-Term Rental Applications
For example, long-term rentals are common in the construction industry. Many times, new construction does not have utility power for a set amount of time. Road construction projects often require portable generators to move from one location to another. Hospitals and healthcare facilities that must have a constant, dependable power supply also have a need for temporary power.
Advantages of Purchasing a Generator
Permanently Installed Generator
Long-term use is a primary reason for purchasing a generator set. Selecting the proper size and generator rating is imperative when designing the power generation system. A rule of thumb for ratings is:
- Emergency/Standby
- Prime
- Continuous
Benefits of Purchasing
Once the correct generator is selected and installed, some key advantages are:
- Asset Ownership
- Savings vs. Long-Term Rental Costs
- You Control Power Availability
- No Ongoing Maintenance Fees from Rental Providers
- Internal Staff Maintenance and Repair Options
- Configuration Modifications
- External Vendor Maintenance and Repair
Generators can be purchased with a wide range of options, including portable units, sound attenuated enclosures, and permanently installed units.
Transportation and Services
Crane and Shipping Services
After the generator has been purchased or a rental agreement is signed, the remaining items are transported to the site for installation and connection. Smaller portable units can be easily moved to job sites, while larger units require semi-trucks and crane services.
Selecting a Generator Supplier
Key Considerations
Selecting a generator supplier is one of the next primary steps in the decision process. Important attributes include:
- Time in Business
- Size of Stock
- Transportation Services
- Maintenance and Repair Services
To summarize, a great deal of thought often goes into making this key decision on renting vs. purchasing a generator. Generator Source has 35 years in power generation sales, rentals, and service and can help make this process easier. Call 844-214-0900 to talk to a representative or contact us online today.