### 8B-i APPENDIX 8B. DETAILED LIFE

- CYCLE COST AND PAYBACK PERIOD
ANALYSIS RESULTS

TABLE OF CONTENTS

8B.1 INTRODUCTION .........................................................................................................8B-1

8B.2 DETAILED RESULTS .................................................................................................8B-2

8B.2.1 Life -Cycle Cost Results For SPVAC <65 kBtu/h .............................................8B-2

8B.2.2 Life -Cycle Cost Results for SPVHP <65 kBtu/h ...............................................8B-3

8B.3 EPCA BASELINE SENSITIVITY RESULTS .............................................................8B-5

8B.3.1 Life -Cycle Cost Results for SPVAC <65 kBtukBtu/h .......................................8B-5

8B.3.2 Life -Cycle Cost Results for SPVHP <65 kBtu/h ...............................................8B-6

8B.3.3 Life

- Cycle Cost Results for SPVAC 6 5–135 kBtu/h .........................................8B-8

8B.3.4 Life -Cycle Cost Results for SPVHP 65–135 kBtu/h .........................................8B-9

LIST OF TABLES

Table 8B.2.1 LCC Results for SPVAC <65 kBtu/h ..................................................................8B-2
Table 8B.2.2 LCC Results for SPVHP <65 kBtu/h ...................................................................8B-3
Table 8B.3.1 LCC Results for SPVAC <65 kBtu/h ..................................................................8B-5
Table 8B.3.2 LCC Results for SPVHP <65 kBtu/h ...................................................................8B-6
Table 8B.3.3 LCC Results for SPVAC 65 –135 kBtu/h .............................................................8B-8
Table 8B.3.4 LCC Results for SPVHP 65–135 kBtu/h .............................................................8B-9

LIST OF FIGURES

Figure 8B.2.1 LCC Results for SPVAC <65 kBtu/h .................................................................8B-2 Figure 8B.2.2 PBP Results for SPVAC <65 kBtu/h ..................................................................8B-3 Figure 8B.2.3 LCC Results for SPVHP <65 kBtu/h ..................................................................8B-4 Figure 8B.2.4 PBP Results for SPVHP <65 kBtu/h ..................................................................8B-4 Figure 8B.3.1 LCC Results for SPVAC <65 kBtu/h .................................................................8B-5 Figure 8B.3.2 PBP Results for SPVAC <65 kBtu/h ..................................................................8B-6 Figure 8B.3.3 LCC Results for SPVHP <65 kBtu/h ..................................................................8B-7 Figure 8B.3.4 PBP Results for SPVHP <65 kBtu/h ..................................................................8B-7 Figure 8B.3.5 LCC Results for SPVAC 65 –135 kBtu/h ...........................................................8B-8 Figure 8B.3.6 PBP Results for SPVAC 65 –135 kBtu/h ............................................................8B-9 Figure 8B.3.7 LCC Results for SPVHP 65 –135 kBtu/h ..........................................................8B-10 Figure 8B.3.8 PBP Results for SPVHP 65 –135 kBtu/h ..........................................................8B-10

### 8B-1 APPENDIX 8B. DETAILED LIFE

- CYCLE COST AND PAYBACK PERIOD
ANALYSIS RESULTS

8B.1 INTRODUCTION

This appendix contains detailed output from the life- cycle cost (LCC) analysis for single package vertical air conditioners and heat pumps (SPVU equipment) as developed using the LCC spreadsheet. LCCs and payback periods (PBPs) are presented for each of th e four equipment classes at each efficiency level. See chapter 8 of the technical support document for an explanation of the LCC spreadsheet.

LCC savings output obtained from the LCC analysis are in the form of distributions. LCC savings distributions were generated by performing 10,000 separate simulations using the LCC spreadsheet, and allowing the spreadsheet to select values for numerous inputs given probability distributions for each input. T he U.S. Department of Energy (DOE) calculated summary
statis tics at each efficiency level for all equipment classes. These include average values for product installation costs, operating costs

, LCC, and average LCC savings for affected

customers . To show the variability in LCC savings, DOE calulates the percentag es of customers who (1) receive benefits in the form of lower LCC results; (2) are not affected by the standards; or (3) experience a cost in the form of increased LCC from equipment ownership relative to the baseline efficiency equipment . Finally, DOE pr esents median PBPs for the efficiency
investments to show how quickly or slowly the initial investment in efficiency is recovered from operating savings. Results of the LCC and accompanying PBP analys is are shown in the tables of this appendix.

Also inclu ded in this appendix are two graphical presentations for each of the LCC and PBP results. One plots LCC savings distributions for all equipment classes analyzed. The figures illustrate the mean and median values on the plot with the help of red and blue ma rkers, respectively. Additionally, the mean and median values are surrounded by rectangular boxes that represent the 25th and 75th percentile values. The lower edge of the elongated rectangle represents the 25th percentile, which means that 25 percent of t he customers will experience LCC savings below the value represented by the bottom of the rectangle if the standard were set at the level in question. The upper edge of the elongated rectangle represents the 75th percentile. Finally, each of the rectangles includes two “tails,” or two vertical black lines, extending downward to represent the 5th percentile (lower end) and upward to represent the 95th percentile (upper end).

The remainder of this appendix presents the tabular and graphical results for the four equipment classes analyzed in the SPVU equipment rulemaking.

### 8B-2 8B.2 DETAILED RESULTS

8B.2.1 Life

- Cy cle Cost Results For SPVAC <65 kBtu/h

Table 8B.2.1 LCC Results for SPVAC <65 kBtu/h

TSL Energy Efficiency

Level Life

- Cycle Cost, All Customers

201 3 $ Life

- Cycle Cost Savings

Median Payback

Period

years Installed

Cost Discounted Operating

Cost LCC Affected

Customers’

Average Savings

201 3 $ * % of Consumers that Experience

Net
Cost No Impact Net
Benefit

ASHRAE
Baseline ASHRAE
Baseline 4,795 12,335 17,130

1 1 4,939 12,074 17,013 116 25 26 49 7.9

2 2 5,083 11,839 16,922 179 37 1 62 8.4

3 3 5,546 11,578 17,123 (24) 62 0 38 14.4

4 4 6,407 11,516 17,924 (825) 87 0 13 27.3 * Parentheses indicate negative values



### Figure 8B.2.1 LCC Results for SPVAC <65 kBtu /h -2000 -1500 -1000

-500 0 500 1000 1500

1 2 3 4Life-cycle Cost Savings($)

Efficiency Level Mean Median

### 8B-3 Figure 8B.2.2 PBP Results for SPVAC <65 kBtu /h

8B.2.2 Life

- Cycle Cost Results for SPVHP <65 kBtu /h

Table 8B.2.2 LCC Results for SPVHP <65 kBtu /h

TSL Energy Efficiency

Level Life

- Cycle Cost, All Customers

201 3 $ Life

- Cycle Cost Savings

Median Payback

Period

years Installed

Cost Discounted Operating
Cost LCC Affected

Customers’

Average Savings

201 3 $ * % of Consumers that Experience

Net
Cost No Impact Net
Benefit

ASHRAE
Baseline ASHRAE
Baseline 5,363 30,464 35,827

1 1 5,529 29,939 35,468 358 0 26 74 4.1

2 2 5,695 29,618 35,313 424 1 1 98 4.8

3 3 6,224 28,690 34,914 819 7 0 92 6.2

4 4 7,210 28,698 35,909 (177) 68 0 32 13.6 * Parentheses indicate negative values. 0 50 100 150 200 250 300

1 2 3 4Payback Period (years)

Efficiency Level Median

### 8B-4 Figure 8B.2.3 LCC Results for SPVHP <65 kBtu/h

Figure 8B.2.4 PBP Results for SPVHP <65 kBtu/h -1500 -1000

-500 0 500 1000 1500 2000 2500

1 2 3 4Life-cycle Cost Savings($)

Efficiency Level Mean Median

0.0 5.0 10.0 15.0 20.0 25.0

1 2 3 4Payback Period (years)

Efficiency Level Median

### 8B-5 8B.3 EPCA BASELINE SENSITIVITY RESULTS

For informational purposes, DOE also conducted an LCC & PBP analysis comparing more efficient equipment against EPCA baseline equipment. The results from this analysis are given in Table 8B.3.1 through Table 8B.3.4 and in Figure 8B.3.1 through Figure 8B.3.8

.

8B.3.1 Life

- Cycle Cost Results f or SPVAC <65 kBtukBtu/h

Table 8B.3.1 LCC Results for SPVAC <65 kBtu/h

TSL Energy Efficiency

Level Life

- Cycle Cost, All Customers
2013$ Life

- Cycle Cost Savings

Median Payback

Period

years Installed

Cost Discounted Operating

Cost LCC Affected

Customers'

Average Savings 2013$ * % of Consumers that Experience

Net
Cost No Impact Net
Benefit

EPCA
Baseline EPCA
Baseline 4,185 13,026 17,211

1 2 4,939 12,074 17,013 172 42 3 56 10.7

2 3 5,083 11,839 16,922 261 42 1 57 10.4

3 4 5,546 11,578 17,123 57 58 0 42 13.2

4 5 6,407 11,516 17,924 (744) 79 0 21 20.7

* Parentheses indicate negative values.



### Figure 8B.3.1 LCC Results for SPVAC <65 kBtu/h -2500 -2000 -1500 -1000

-500 0 500 1000 1500 2000

1 2 3 4 5Life-cycle Cost Savings($)

Efficiency Level Mean

Median

### 8B-6 Figure 8B.3.2 PBP Results for SPVAC <65 kBtu/h

8B.3.2 Life -Cycle Cost Results for SPVHP <65 kBtu/h

Table 8B.3.2 LCC Results for SPVHP <65 kBtu/h

Trial

Standard

Level Energy Efficiency

Level Life

- Cycle Cost, All Customers 2013$ Life

- Cycle Cost Savings

Median Payback

Period

years Installed

Cost Discounted Operating

Cost LCC Affected

Customers'

Average Savings 2013$ * % of Consumers that Experience

Net
Cost No Impact Net
Benefit

EPCA
Baseline EPCA
Baseline 4,664 30,988 35,652

1 2 5,529 29,939 35,468 231 28 3 70 10.0

2 3 5,695 29,618 35,313 382 21 1 78 9.3

3 4 6,224 28,690 34,914 777 15 0 85 8.6

4 5 7,210 28,698 35,909 (218) 67 0 33 14.2

* Parentheses indicate negative values. 0 10 20 30 40 50 60 70 80 90 100

1 2 3 4 5Payback Period (years)

Efficiency Level Median

### 8B-7 Figure 8B.3.3 LCC Results for SPVHP <65 kBtu/h

Figure 8B.3.4 PBP Results for SPV HP <65 kBtu/h -1500 -1000

-500 0 500 1000 1500 2000 2500

1 2 3 4 5Life-cycle Cost Savings($)

Efficiency Level Mean

Median

0.0 10.0 20.0 30.0 40.0 50.0 60.0

1 2 3 4 5Payback Period (years)

Efficiency Level Median

### 8B-8 8B.3.3 Life

- Cycle Cost Results for SPVAC 65 –135 kBtu/h

Table 8B.3.3 LCC Results for SPVAC 65 –135 kBtu/h

Trial

Standard

Level Energy Efficiency

Level Life

- Cycle Cost, All Customers 2013$ Life

- Cycle Cost Savings

Median Payback

Period

years Installed

Cost Discounted Operating

Cost LCC Affected

Customers'

Average Savings 2013$ % of Consumers that Experience

Net
Cost No Impact Net
Benefit

EPCA
Baseline 5,861 21,347 27,207

ASHRAE
Baseline ASHRAE
Baseline 6,659 19,805 26,464 737 16 29 55 7.0



### Figure 8B.3.5 LCC Results for SPVAC 65 –135 kBtu/h -500 0 500 1000 1500 2000 2500 3000

1Life-cycle Cost Savings($)

Efficiency Level Median Mean

### 8B-9 Figure 8B.3.6 PBP Results for SPVAC 65

– 135 kBtu/h

8B.3.4 Life

- Cycle Cost Results for SPVHP 65 –135 kBtu/h

Table 8B.3.4 LCC Results for SPVHP 65 –135 kBtu/h

Trial

Standard

Level Energy Efficiency

Level Life

- Cycle Cost, All Customers
2013$ Life

- Cycle Cost Savings

Median Payback

Period

years Installed

Cost Discounted Operating

Cost LCC Affected

Customers'

Average Savings 2013$ % of Consumers that Experience

Net
Cost No Impact Net
Benefit

EPCA
Baseline 6,487 57,250 63,737

ASHRAE
Baseline ASHRAE
Baseline 7,409 56,078 63,487 241 34 29 37 10.9 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0

1Payback Period (years)

Efficiency Level Median

### 8B-10 Figure 8B.3.7 LCC Results for SPVHP 65

– 135 kBtu/h

Figure 8B.3.8 PBP Results for SPVHP 65

– 135 kBtu/h -1000

-500 0 500 1000 1500 2000

1Life-cycle Cost Savings($)

Efficiency Level Mean

Median

0 5 10 15 20 25 30

1Payback Period (years)

Efficiency Level Median