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 65–135 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 the 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. The U.S. Department of Energy (DOE) calculated summary 

statistics 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 percentages 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 presents 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 analysis are shown in the tables of 

this appendix. 

Also included 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 markers, 

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 the 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-Cycle 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 

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

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 4

Life-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

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

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 4

Payback 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 4

Life-cycle Cost Savings($)

Efficiency Level

Mean Median

0.0

5.0

10.0

15.0

20.0

25.0

1 2 3 4

Payback 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 for 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 5

Life-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 5

Payback 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 SPVHP <65 kBtu/h 

-1500

-1000

-500

0

500

1000

1500

2000

2500

1 2 3 4 5

Life-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 5

Payback 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

1

Life-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

1

Payback 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

1

Life-cycle Cost Savings($)

Efficiency Level

Mean

Median

0

5

10

15

20

25

30

1

Payback Period (years)

Efficiency Level

Median