Mobile generators are among the most important pieces of equipment on a drilling site, often powering the entire operation. Because of this central role, contractors are often torn between investing in the purchase of a mobile generator or renting the machine as needed. Considering the four main factors of cost, maintenance, utilization and customization can help lead to the right decision.
Determining when to buy or rent is a business decision — one based on machine needs, cash flow, cash reserves and the availability of financing tools. If you are taking on long-term projects, then a permanent purchase of a mobile generator may be justified. Purchasing can provide tax advantages for your bottom line, a return on investment and potential resale value. As with any purchase, the value of the generator will depreciate over time, and monthly costs can fluctuate as maintenance or repair issues occur.