Switchgear Equipment
Soft Starter Financing
A motor starting across-the-line draws six to eight times its full-load current for several seconds, creates a mechanical jolt that stresses the shaft and connected equipment, and dumps a voltage disturbance on the distribution bus that affects other loads on the same circuit. Soft starters fix all three problems by gradually ramping up the voltage through silicon-controlled rectifiers during start-up, limiting the inrush current, controlling the torque rise, and producing a smooth acceleration to full speed. Once the motor reaches full speed, the soft starter typically bypasses itself with a contactor so the motor runs across-the-line with no losses in the SCR section.
Soft starters are the right choice when speed control during running operation is not needed, only a smoother start and stop. They are less expensive than variable frequency drives for the same motor rating and are the practical selection for large motor applications where the process only needs the motor to run at full speed with a controlled start rather than variable speed throughout the run cycle.
We finance soft starters as part of a broader motor control project or as a standalone purchase when the volume reaches $50,000. Application-only financing up to approximately $400,000. Decisions in 24 to 48 hours on complete files.
Soft Starters Vs. VFDs: Choosing The Right Technology
The decision between a soft starter and a VFD for a large motor application comes down to what the process actually needs. A soft starter costs 30% to 60% less than a VFD of the same rating because it does not need the DC bus capacitor bank or the full inverter stage. When the application runs the motor at one speed, full speed, a soft starter is the economical choice. When the application needs speed control throughout the run cycle, a VFD is the only option.
Common soft starter applications include large centrifugal pumps where the only concern is water hammer and starting current, centrifugal compressors and fans, conveyors and belt drives where smooth starting prevents belt slippage and damage, and large air conditioning compressors where a controlled start reduces mechanical stress.
For applications where the choice is not obvious, a soft starter with an integrated bypass contactor can be combined with a VFD on the same motor through a drive bypass scheme. Some plants install VFDs on their largest motors for normal operation and configure a bypass path through a soft starter for degraded-mode operation if the VFD trips. This redundancy approach is common in critical pump stations and cooling systems. Both the VFD and the soft starter in that scheme can be financed together. See the variable frequency drives page for VFD-specific financing options.
Large soft starters for motors above 500 horsepower are sizable equipment purchases. A 500HP soft starter may run $8,000 to $20,000 depending on the manufacturer and features. A 2,000HP soft starter for a large compressor can cost $40,000 to $80,000 or more. A plant replacing soft starters across a dozen large motor loads quickly reaches a project value typically $200k to $500k all-in that makes financing practical.
Industries That Buy Soft Starters
Soft starters find their heaviest use in industries with large motor loads where starting current limitation and mechanical soft start are the primary concerns.
Water and wastewater treatment uses soft starters extensively on large pump motors where water hammer on direct-across-the-line starts is a maintenance issue. A treatment plant replacing aging autotransformer starters with modern solid-state soft starters across its pump station motors is a common capital project. Water and wastewater treatment facilities often purchase soft starters in batches that total well above the $50,000 financing minimum.
Oil, gas, and petrochemical operations use soft starters for large pump and compressor motors where VFD operation at full speed is not needed but across-the-line starting current would exceed utility demand limits or create distribution disturbances at the facility. Oil, gas, and petrochemical buyers purchase soft starters as part of motor control center upgrades or standalone for large individual motor loads.
Industrial and manufacturing plants running large conveyor systems, compressors, and process drives use soft starters where full-speed operation is the norm and only the start ramp needs to be controlled. Industrial and manufacturing soft starter projects often coincide with motor control center replacements where the new MCC sections include integral soft starters rather than standard magnetic starters.
Mining and materials operations use large soft starters on crusher drives, conveyor belts, and pump systems. Mine sites in remote locations where distribution capacity is limited especially benefit from reduced starting current that soft starters provide. Mining and materials soft starter projects at remote sites sometimes involve equipment shipping to locations with long logistics chains, which adds to the procurement lead time.
How Soft Starter Financing Works
Soft starter projects that meet the $50,000 minimum qualify for application-only financing at their full value up to approximately $400,000. Most soft starter volume purchases for industrial plants fall within this range. The application process is simple: business basics, equipment description, and vendor. Decisions come back in 24 to 48 hours for established businesses.
Soft starters purchased as part of a larger motor control project alongside MCCs and distribution equipment can be packaged in the same financing transaction. Bundling the soft starters into a broader motor control center or distribution upgrade transaction simplifies documentation and produces one payment.
For businesses that have purchased soft starters out of pocket in recent months and want to recover that capital, a cash-out refinancing on equipment already in service is an option. The equipment value must support the transaction amount, and soft starters for large motors hold value reasonably well in the secondary market.
Price This Switchgear Financing Package
Send the quote, seller, lead time, deposit requirement, project location, and the electrical package scope. We will review the structure around the purchase schedule.
Review Switchgear TermsCommon Questions on Soft Starter Financing
Straight answers before you send the equipment file.
Can we finance soft starters and variable frequency drives together on the same motor control project?
Yes. A motor control project using a mix of soft starters for constant-speed loads and VFDs for variable-speed loads can be financed as a single transaction. The mix of equipment types is common in industrial motor control upgrades and does not create a problem for packaging them together.
We have a dozen large pump motors that need soft starters. Is that number of units too many or too few for financing?
There is no unit count limit from a financing standpoint. Twelve soft starters purchased together as one project package qualify just as readily as a single large unit. What matters is the total transaction value meeting the $50,000 minimum.
Our facility runs 4,160V motors. Are there medium-voltage soft starters and are they financeable?
Medium-voltage soft starters for 4,160V and other MV motor applications exist and qualify for financing. MV soft starters are larger, more expensive, and less common than LV units, but they are identifiable equipment with a clear market value and long useful life. The financing process is the same.
We replaced several soft starters ourselves last quarter and paid from operating funds. Can we refinance those now?
A cash-out refinance or sale-leaseback on recently purchased equipment is possible. The equipment must be identifiable and have documentation. Soft starters purchased from a recognized distributor with clear invoices and serial numbers are good candidates for a refinance transaction to recover the cash already spent.
Review The Soft Starter Financing Package
Send the equipment quote, seller, lead time, deposit schedule, and project location. The finance desk will review the package against the actual procurement calendar.