Renting or Buying Industrial Water Chillers – Which is Better?

Industrial water chiller systems play a vital role in many different types of industrial processes.  Their job, quite simply, is to remove heat, and chillers perform this task very well. They are also very adaptable; this versatility is why they are so commonly used around the world and across industries for process cooling systems.

When it comes to the question of buying versus renting a chiller unit, there are several factors to consider.  We know that many businesses and processes choose to purchase their chiller unit. It is a significant expenditure, but they recognize that:

• Their business and, therefore chiller will be in place for a long time
• It makes sense as an investment
• It is a crucial part of their operation and processes
• They have the mechanical resources in place to maintain the unit and make changes to it as required

These are all very good reasons for purchasing an industrial water chiller. There are, however, some equally good reasons and instances where it makes a lot of sense to rent an industrial chiller.  We’d like to explore a few of these so that you get a sense of what might be in your best interest as a business owner.  

So here we go – let’s take a look at some reasons why an organization may choose to rent an industrial chiller system.

Reasons Why You Might Consider Renting an Industrial Water Chiller Vs Renting

Upfront Cost

We’ve mentioned that the purchase of a chiller is a fairly significant upfront capital expenditure.  A business just starting out, for instance, may benefit from a chiller rental as a means of easing the cash flow burden. The cost of the rental can be calculated on a monthly basis as an operating expense.  This can be a wise move; many businesses use this strategy as a means of cost control and predictability in their operating expenses.

Changing Needs Over Time

An operation may not be certain what its cooling needs are going to be in 1 year, 2 years, 5 years or 10 years.  Having the flexibility of a rented industrial chiller system effectively addresses this issue.  Capacity issues, for example, are more easily addressed should a business need to upscale or downscale its operations.  Also, the intention to move from a current location is a good reason to avoid a large capital expenditure such as a chiller system, only to have to dismantle and move it at the end of the lease. In this scenario, it makes perfect sense to rent, for example, until the move is made and then weigh all options.

Maintenance and Upkeep of the Industrial Water Chiller

This strategy is akin to the leasing of office equipment or company automobiles.  The rental agreement that goes with a rented industrial chiller will typically include all required maintenance and repairs.  This could be a significant benefit to an organization that lacks the qualified mechanical personnel to handle regular upkeep and repair of the chiller unit.  It amounts to “one less thing to worry about” for a plant manager or company president.  

Temporary Usage of an Industrial Water Chiller

For a company embarking on work with a definite ending time – a one-year project, for example, or a one-off order – it might make perfect sense to rent an industrial chiller unit on a lease lasting the duration of the anticipated work.  Once again, a capital expenditure is avoided, and when the work is finished and the rental agreement expires, the chiller goes back to the supplier. 

If your requirement for a chiller is temporary and limited to a specific use or special situation, it makes perfect sense to consider renting – versus purchasing – the unit.

Instances Where a Rented Industrial Water Chiller Should be Considered

Seasonal usage – a good example is in an agricultural operation.  Should the requirement for extra cooling be limited to a certain time of year, i.e. the growing or harvesting season, a rented chiller system is a sound strategy.  A deal can be made with the supplier to supply and install the rental chiller unit at the same time every year.  It minimizes the complication and expense of having a chiller unit on site that is not required for the majority of the year.

Supplemental cooling and emergency use – should an operation run into a situation where the existing HVAC or water chiller system is not adequate for current conditions or the existing system is overworked, consideration should be given to renting an industrial chiller system on a temporary basis, until such time as conditions return to normal in operation.  This again avoids the expense associated with the purchase of a permanent auxiliary or limited-use chiller unit.

Concluding Thoughts – Renting or Buying an Industrial Water Chiller

As a business organization, careful consideration must be given to each and every expenditure.  In the case of industrial processes, there are going to be many instances where the purchase of a chiller system is the logical decision.  All the requirements have been identified, a forecast has been developed and approved for the lifespan of the process, and it all points to making a permanent installation that the company can add to its physical assets.  Such an approach is common and completely reasonable.

There are other situations, however, such as those we’ve tried to illustrate, where it makes absolute sense to consider renting an industrial chiller.  We’ve been in business for over three decades now and have seen just about every application imaginable; as a result, we’ve seen many instances where the ultimate recommendation was a rental arrangement of a chiller versus the purchase of one.

We are proud of our ability to supply our customers high-quality, reliable industrial water chillers on a rental basis. Our rental contracts include any required maintenance repairs, offering our clients complete confidence that their unit will function as needed for the duration of the rental agreement.

If you would like more information on the rental of an industrial water chiller system, we would be happy to hear from you.  Please contact our team to learn more today.