Texas Contractor

Dedicated to the people who make our built environment better and safer. We tell your stories and celebrate your successes.

Register with us and receive industry news and content only available to subscribers.

Subscribe
Contacts

Indianapolis, IN, USA (HQ)

903 E. Ohio St., Indianapolis, IN 46202

Call: (317) 423-2325

info@acppubs.com

Financial Side of Electric Equipment

by: Lars Arnold, Product Manager — Sustainable Power, Volvo Construction Equipment
Volvo ECR25 Electric Compact Excavator
Volvo ECR25 Electric Compact Excavator
Volvo EC230 Electric Excavator
Volvo EC230 Electric Excavator
Volvo L25 Electric Compact Wheel Loader
Volvo L25 Electric Compact Wheel Loader

Our evolving climate is increasingly influencing the ways we approach infrastructure and construction. Changes like frequent extreme weather and greater temperature swings put added stress on roads, bridges, and other essential structures. For example, intense flooding can erode bridge foundations, while prolonged heat waves can accelerate road degradation. Without action, these issues will only worsen, leading to higher repair costs, disruptions to transportation networks, and greater risks to public safety.

In response, the construction industry is embracing greener solutions where they make sense. Hybrid and electric heavy equipment are becoming viable alternatives to traditional diesel machines, offering the potential to reduce greenhouse gas emissions and address the growing demand for sustainable infrastructure. While these machines come with higher upfront costs, their long-term financial and environmental benefits make them an attractive option for forward-thinking contractors and fleet managers.

Dispelling Myths About Performance

One of the common misconceptions about electric construction equipment is that it’s less powerful than comparable diesel models. However, advancements in technology have proven otherwise.

Many electric machines now match or even exceed the performance of their diesel counterparts. For instance, compact electric excavators and wheel loaders often boast similar specifications, with additional advantages like instant torque and reduced vibration that enhance operator comfort and precision.

Electric machines also produce significantly less noise, which can improve job site safety and reduce operator fatigue. Quieter operation makes these machines ideal for urban environments and projects near schools or hospitals where noise restrictions are a concern. By investing in electric equipment, contractors can meet performance demands while addressing environmental and community concerns.

Sennebogen LLC
Your local Sennebogen LLC dealer
ASCO Equipment
WPI

Operational Savings Lower Costs Over Time

Although electric machines generally cost more upfront than diesel models, their lower operating and maintenance costs can result in significant savings over time. Unlike diesel engines, electric machines don’t idle, which means fewer hours logged during non-productive times. This can extend the lifespan of the equipment and increase its resale value.

Maintenance is another area where electric equipment shines. Without the need for engine-related upkeep like oil changes, DEF, and filter replacements, maintenance is quite minimal. Regular servicing is limited to hydraulic oil, grease, and, in some cases, coolant for water-cooled components. These simplified needs translate to reduced downtime and lower costs. Volvo CE conservatively estimates that users will see a 35 percent savings in maintenance cost and time over the lifespan of their electric machines.

Fuel savings also play a major role in the financial benefits of electric equipment. With diesel prices constantly fluctuating, electricity is a more stable, less expensive energy source.

Battery Life and Charging

One of the primary concerns contractors have about electric equipment is battery life. While it’s true that electric machines may not run as long as diesel models on a single charge, their efficient energy use often compensates for this difference. Because electric machines shut off during idle periods, they can operate longer on a single charge than many contractors might think.

Gradall Co
Your local Gradall Industries dealer
Kirby Smith Machinery
ASCO Equipment
WPI

To maximize uptime, it’s important to plan for charging breaks when necessary. For example, a quick charge during lunch can often provide enough power to complete a full day’s work when an electric machine has been operating at or near maximum capacity. Advances in battery technology and the development of fast-charging systems are making this process even more seamless.

For job sites where grid access is not feasible, there are a growing number of portable, off-grid charging options. Contractors should work with their equipment dealers to understand their charging needs and identify opportunities to offset infrastructure costs.

Incentives Make It More Affordable

There are a variety of grants, credits, and point-of-sale incentives that can help make electric equipment more affordable. Your eligibility may depend on where your organization is located, the type of equipment you're considering, and other factors.

Finding and taking advantage of these incentives may seem complex at first glance, but many equipment manufacturers and their dealers can help. Volvo dealers, for example, have access to a specific tool that can help customers find the most beneficial incentives in their area.

Why Electric Is Worth the Investment

There are a lot of contractors interested in the benefits battery power brings to the table, but they’re not quite ready to commit. Some aren’t sure if it’ll be the right fit. Some don’t want to invest in the technology today knowing there may be advances in the near future that they’ll miss out on. Others simply want to try it first without the commitment of buying. In these instances, renting or leasing might be the better path forward. These options remove some of the stress of fully committing to new technology, essentially creating a trial run.

For those ready to take the next step, the upfront cost of electric heavy equipment may seem daunting — but the long-term savings and environmental benefits make it a worthwhile investment. Reduced operating costs, lower maintenance requirements, and access to financial incentives all contribute to the growing appeal of electric machines. And as technology continues to evolve, the performance and affordability of electric equipment will only improve.

By embracing electric heavy equipment, contractors can position themselves as leaders in sustainable construction and help fulfill a growing need to address climate change — while reaping financial rewards. Whether through a trial period like renting or leasing or through full ownership, the transition to electric machines offers undeniable benefits for businesses, communities, and the planet.

ASV
Your local ASV dealer
CLM Equipment Co
Stewart-Amos
Your local Stewart-Amos dealer
Closner Equipment Co Inc