CHAPTER 11. LIFE-CYCLE COST SUBGROUP ANALYSIS 

TABLE OF CONTENTS 

11.1	 INTRODUCTION ......................................................................................................... 11-1
 

11.2	 SUBGROUPS DEFINITION ........................................................................................ 11-1
 

11.2.1 Senior–Only Households ............................................................................................... 11-1
 

11.2.2 Low-Income Households............................................................................................... 11-1
 

11.2.3 Multi-Family Households .............................................................................................. 11-2
 

11.2.4 Mobile Home Households ............................................................................................. 11-2
 

11.3	 INPUTS TO THE LIFE-CYCLE COST AND PAYBACK PERIOD SUBGROUP
 

ANALYSIS.................................................................................................................... 11-2
 

11.4	 RESULTS ...................................................................................................................... 11-5
 

11.4.1 Water Heaters................................................................................................................. 11-5
 

11.4.2 Direct Heating Equipment ............................................................................................. 11-9
 

11.5	 DISCUSSION.............................................................................................................. 11-11
 

LIST OF TABLES 

Table 11.2.1 RECS 2005 Definitions of Low-Income Households by Yearly Income.......... 11-2
 

Table 11.3.1 Household Population Data for Water Heaters.................................................. 11-3
 

Table 11.3.2 Household Population Data for Direct Heating Equipment .............................. 11-3
 

Table 11.3.3 Gas-Fired Water Heaters: Comparison of Input Values for All
 

Households, Senior-Only, Low-Income, Multi-Family, and Mobile Homes.... 11-4
 

Table 11.3.4 Electric Water Heaters: Comparison of Input Values for All Households,
 

Table 11.3.5 Gas Wall Fan DHE: Comparison of Input Values for All Households,
 

Table 11.3.6 Gas Wall Gravity DHE: Comparison of Input Values for All Households,
 

Table 11.4.1 Gas-Fired Storage Water Heaters: LCC and PBP Results for Senior-Only
 

Table 11.4.2 Gas-Fired Storage Water Heaters: LCC and PBP Results for Low-Income
 

Table 11.4.3 Gas-Fired Storage Water Heaters: LCC and PBP Results for Multi-Family
 

Table 11.4.4 Gas-Fired Storage Water Heaters: LCC and PBP Results for Mobile Home
 

Table 11.4.5 Electric Storage Water Heaters: LCC and PBP Results for Senior-Only
 

Table 11.4.6 Electric Storage Water Heaters: LCC and PBP Results for Low-Income
 

Table 11.4.7 Electric Storage Water Heaters: LCC and PBP Results for Multi-Family
 

Table 11.4.8 Electric Storage Water Heaters: LCC and PBP Results for Mobile Home
 

Senior-Only, Low-Income, Multi-Family, and Mobile Homes......................... 11-4
 

Senior-Only, and Low-Income .......................................................................... 11-4
 

Senior-Only, and Low-Income .......................................................................... 11-5
 

Households......................................................................................................... 11-5
 

Households......................................................................................................... 11-6
 

Households......................................................................................................... 11-6
 

Households......................................................................................................... 11-7
 

Households......................................................................................................... 11-7
 

Households......................................................................................................... 11-8
 

Households......................................................................................................... 11-8
 

Households......................................................................................................... 11-9
 

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Table 11.4.9 Gas Wall Fan DHE: LCC and PBP Results for Senior-Only Households ........ 11-9
 

Table 11.4.10 Gas Wall Fan DHE: LCC and PBP Results for Low-Income Households...... 11-10
 

Table 11.4.11 Gas Wall Gravity DHE: LCC and PBP Results for Senior-Only
 

Households....................................................................................................... 11-10
 

Table 11.4.12 Gas Wall Gravity DHE: LCC and PBP Results for Low-Income
 

Households....................................................................................................... 11-11
 

LIST OF FIGURES 

Figure 11.5.1 Electric Storage Water Heaters: Average LCC Savings by Subgroup ............ 11-12
 

Figure 11.5.2 Electric Storage Water Heaters: Households With Net Cost by Subgroup ..... 11-12
 

Figure 11.5.3 Electric Storage Water Heaters: Median Payback Period by Subgroup .......... 11-13
 

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CHAPTER 11. LIFE-CYCLE COST SUBGROUP ANALYSIS
 

11.1 INTRODUCTION
 

Chapter 8 describes the life-cycle cost (LCC) and payback period (PBP) analyses that 

examine impacts of energy conservation standards on the U.S. population. In analyzing the potential 

impact of new or amended standards on residential consumers, DOE further evaluates the impact on 

identifiable groups of consumers (i.e., subgroups) that may be disproportionately affected by a 

national standard level. The LCC subgroup analysis evaluates impacts by analyzing the LCC and 

PBPs for subgroups of residential consumers. For heating products, DOE identified two consumer 

subgroups that warranted further study: households composed of people 65 years of age or older 

(senior-only) and households at or below the poverty line (low-income). 

DOE determined the impact on consumer subgroups for heating products using the LCC 

Spreadsheet Model, which allows for the examination of particular consumer subgroups. DOE 

has the ability to use the LCC Spreadsheet Model to analyze the LCC for any subgroup by 

sampling only the data that apply to that subgroup. (Chapter 8 explains in detail the inputs to the 

model used in determining LCC and PBPs.) As described in section 11.3, the energy use and 

energy price characteristics of the two subgroups (senior-only and low-income households) are 

different than that for the general population. 

This chapter describes the subgroup identification in further detail and gives the results of the 

LCC and PBP analyses for gas-fired and electric storage water heaters, and gas wall fan and gas wall 

gravity DHE. 

11.2 SUBGROUPS DEFINITION 

11.2.1 Senior–Only Households 

Senior-only households have occupants who are all at least 65 years of age. Based on the 

DOE Energy Information Administration (EIA)’s Residential Energy Consumption Survey of 2005 

(RECS), senior-only households comprise 17 percent of the country’s households.1 

11.2.2 Low-Income Households 

As defined in the RECS survey, low-income households are considered to be those at or 

below the “poverty line.” The “poverty line” varies with household size, head of household age, 

and family income. Table 11.2.1 summarizes the income level baselines for selecting lowincome households from the RECS sample. The RECS survey classifies 15 percent of the 

country’s households as low-income. 

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Table 11.2.1 RECS 2005 Definitions of Low-Income Households by Yearly Income
 

Average Income in $ 

Household Size 48 Contiguous States 

and D.C. 

Alaska Hawaii 

1 9,570 11,950 11,010 

2 12,830 16,030 14,760 

3 16,090 20,100 18,510 

4 19,350 24,190 22,260 

5 22,610 28,270 26,010 

6 25,870 32,350 29,760 

7 29,130 36,430 33,510 

8 32,390 40,510 37,260 

9 35,650 44,590 41,010 

10 38,910 48,670 44,760 

11 42,170 52,750 48,510 

12 45,430 56,830 52,260 

13 48,690 60,910 56,010 

14 51,950 64,990 59,760 

15 55,210 69,070 63,510 

11.2.3 Multi-Family Households 

Multi-family households are located in buildings with 2 or more units. According to the 

RECS survey, multi-family households comprise 22 percent of the country’s households. This 

subgroup was only analyzed for water heaters. It comprises 11.1 percent of the sample used for 

gas-fire storage water heaters, and 12.1 percent of the sample used for electric storage water 

heaters. 

11.2.4 Mobile Home Households 

According to the RECS survey, households living in mobile homes comprise 6 percent of 

the country’s households. This subgroup was only analyzed for water heaters. It comprises 3.5 

percent of the sample used for gas-fired storage water heaters, and 11.9 percent of the sample 

used for electric storage water heaters. 

11.3	 INPUTS TO THE LIFE-CYCLE COST AND PAYBACK PERIOD 

SUBGROUP ANALYSIS 

DOE performed the consumer subgroup analysis by analyzing the LCC and PBP of 

senior-only, low-income, multi-family, or mobile households with the spreadsheet models used 

for the LCC and PBP analysis. 

Tables 11.3.1 and 11.3.2 summarize the household populations for water heaters and direct 

heating equipment, while Tables 11.3.3 and 11.3.4 summarize the weighted-average annual energy 

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use, and energy prices for the households analyzed in the consumer subgroup analyses. These values 

are compared against the weighted-average values for the national sample. 

For water heaters, DOE performed subgroup analyses for gas-fired storage water heaters and 

electric storage water heaters. Oil-fired storage water heaters were excluded due to low product 

shipments. Gas-fired instantaneous water heaters were excluded due to insufficient data. 

For direct heating equipment, DOE performed subgroup analyses for gas wall gravity DHE 

and gas fan wall DHE. Gas floor DHE were excluded due to the low and decreasing levels of product 

shipments. Gas room DHE were excluded for this same reason. For gas hearth DHE, DOE performed 

the senior-only analysis but did not perform the low-income analysis due to the extremely small 

sample size, and relatively high product cost. 

Table 11.3.1 Household Population Data for Water Heaters 

Gas Electric 

Count Weight Count Weight 

National 2,166 55,180,081 1,523 39,506,510 

Seniors 317 9,082,147 256 6,900,727 

Senior % 14.6% 16.5% 16.8% 17.5% 

Low Income 311 6,336,149 291 6,294,691 

Low % 14.4% 11.5% 19.1% 15.9% 

Multi 241 6,140,241 187 4,797,185 

Multi % 11.1% 11.1% 12.3% 12.1% 

Mobile 90 1,948,744 181 4,719,689 

Mobile % 4.2% 3.5% 11.9% 11.9% 

Table 11.3.2 Household Population Data for Direct Heating Equipment
 

Gas Wall Fan / 

Gas Wall Gravity Gas Floor Gas Room Gas Hearth 

Count 

Weight 

(million) Count 

Weight 

(million) Count Weight Count Weight 

National 101 2.45 95 2.30 153 3.83 121 3.10 

Seniors 14 0.46 13 0.40 38 0.94 15 0.40 

Low 

Income 30 0.69 29 0.67 36 0.85 4 0.08 

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Table 11.3.3 Gas-Fired Water Heaters: Comparison of Input Values for All 

Households, Senior-Only, Low-Income, Multi-Family, and Mobile Homes 

Gas-Fired Water Heaters All 

Households 

Senior 

-Only 

LowIncome MultiFamily Mobile 

Weighted-Average Annual Energy Use for Baseline Water Heaters 

Natural Gas Use (MMBtu) 16.7 13.5 16.7 11.97 15.96 

Electricity Use (kWh) 0 0 0 0 0 

Weighted-Average Natural Gas Prices 

Average Natural Gas Price ($/MMBtu) 14.17 14.29 14.04 14.38 13.68 

Average LPG Price ($/MMBtu) 26.21 25.63 26.97 23.14 26.89 

Weighted-Average Electricity Prices 

Average Electricity Price (¢/kWh) 12 12 12 13 11 

Table 11.3.4 Electric Water Heaters: Comparison of Input Values for All Households, 

Senior-Only, Low-Income, Multi-Family, and Mobile Homes 

Electric Water Heaters All 

Households 

SeniorOnly LowIncome MultiFamily Mobile 

Weighted-Average Annual Energy Use for Baseline Water Heaters 

Electricity Use (kWh) 2617 2207 2587 1416 2595 

Weighted-Average Electricity Prices 

Average Electricity Price (¢/kWh) 11 11 11 11 10 

Table 11.3.5 Gas Wall Fan DHE: Comparison of Input Values for All Households, 

Senior-Only, and Low-Income 

Gas Wall Fan DHE All Households Senior-Only Low-Income 

Weighted-Average Annual Energy Use for Baseline DHE 

Space-Heating Natural Gas Use (MMBtu) 29.6 33.3 42.3 

Space-Heating Electricity Use (kWh) 39 44 55 

Weighted-Average Natural Gas Prices 

Average Natural Gas Price ($/MMBtu) 12.25 12.48 12.32 

Average LPG Price ($/MMBtu) 26.68 26.48 27.57 

Weighted-Average Electricity Prices 

Average Electricity Price (¢/kWh) 13 11 11 

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Table 11.3.6 Gas Wall Gravity DHE: Comparison of Input Values for All Households, 

Senior-Only, and Low-Income 

Gas Wall Gravity DHE All Households Senior-Only Low-Income 

Weighted-Average Annual Energy Use for Baseline DHE 

Space-Heating Natural Gas Use (MMBtu) 29.7 33.3 42.3 

Space-Heating Electricity Use (kWh) 0 0 0 

Weighted-Average Natural Gas Prices 

Average Natural Gas Price ($/MMBtu) 12.25 12.48 12.32 

Average LPG Price ($/MMBtu) 26.70 26.48 27.57 

Weighted-Average Electricity Prices 

Average Electricity Price (¢/kWh) 13 11 11 

11.4 RESULTS 

11.4.1 Water Heaters 

Tables 11.4.1 through 11.4.8 below summarize the LCC results for gas-fired storage water 

heaters and electric storage water heaters. The LCC results provide the average installed price, 

average lifetime operating cost (discounted), average life-cycle cost, average life-cycle cost savings, 

the percentage of consumers that are burdened with net costs, realize net savings, or are not 

impacted, and the median and average payback period. 

Table 11.4.1	 Gas-Fired Storage Water Heaters: LCC and PBP Results for Senior-Only 

Households 

EF 

Life-Cycle Cost (2008$) Life-Cycle Cost Savings Payback Period 

(years)** 

Average 

Installed 

Price 

Average 

Operating 

Cost 

Average 

LCC 

Average 

Savings 

(2008$) 

Households with 

Median Average 

Net 

Cost 

No 

Impact* 

Net 

Benefit 

0.59 $1,006 $2,022 $3,027 

0.62 $1,040 $1,897 $2,938 $73 9% 19% 72% 1.4 4.9 

0.63 $1,099 $1,835 $2,935 $74 14% 15% 70% 2.7 11.6 

0.64 $1,437 $1,843 $3,280 -$239 71% 10% 20% 36.8 52.4 

0.65 $1,465 $1,789 $3,254 -$214 70% 8% 22% 29.3 39.5 

0.67 $1,519 $1,679 $3,198 -$161 68% 5% 26% 21.1 24.0 

0.80 $1,746 $1,405 $3,151 -$115 66% 1% 32% 15.6 15.3 

* “No impact” means that the base case product assigned to the household has greater efficiency than the
 

level indicated, so the household is not affected.
 

** Based on the payback calculation, a very small change in operating cost can result in a few extremely large
 

paybacks, which will skew the average payback period. In these cases, median is probably a better indicator.
 

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Table 11.4.2 Gas-Fired Storage Water Heaters: LCC and PBP Results for Low-Income 

Households 

EF 

Life-Cycle Cost (2008$) Life-Cycle Cost Savings Payback Period 

(years)** 

Average 

Installed 

Price 

Average 

Operating 

Cost 

Average 

LCC 

Average 

Savings 

(2008$) 

Households with 

Median Average 

Net 

Cost 

No 

Impact* 

Net 

Benefit 

0.59 $989 $2,615 $3,604 

0.62 $1,033 $2,490 $3,523 $68 12% 19% 70% 1.5 5.8 

0.63 $1,103 $2,431 $3,535 $57 19% 15% 66% 2.8 14.0 

0.64 $1,430 $2,433 $3,863 -$240 70% 9% 20% 38.1 52.9 

0.65 $1,463 $2,376 $3,839 -$218 69% 7% 23% 30.5 41.0 

0.67 $1,527 $2,258 $3,784 -$165 68% 5% 27% 22.3 25.6 

0.80 $1,748 $1,919 $3,667 -$50 62% 1% 36% 14.8 14.9 

* “No impact” means that the base case product assigned to the household has greater efficiency than the
 

level indicated, so the household is not affected.
 

** Based on the payback calculation, a very small change in operating cost can result in a few extremely large
 

paybacks, which will skew the average payback. In these cases, median is probably a better indicator.
 

Table 11.4.3	 Gas-Fired Storage Water Heaters: LCC and PBP Results for Multi-Family 

Households 

EF 

Life-Cycle Cost (2008$) Life-Cycle Cost Savings Payback Period 

(years)** 

Average 

Installed 

Price 

Average 

Operating 

Cost 

Average 

LCC 

Average 

Savings 

(2008$) 

Households with 

Median Average 

Net 

Cost 

No 

Impact* 

Net 

Benefit 

0.59 $1,040 $1,650 $2,690 

0.62 $1,095 $1,547 $2,642 $40 18% 20% 62% 1.7 9.6 

0.63 $1,183 $1,493 $2,676 $10 27% 16% 57% 3.2 19.4 

0.64 $1,477 $1,510 $2,987 -$270 72% 10% 18% 41.7 60.1 

0.65 $1,517 $1,460 $2,977 -$261 72% 8% 21% 33.5 46.6 

0.67 $1,594 $1,351 $2,945 -$231 71% 6% 23% 23.7 27.9 

0.80 $1,806 $1,146 $2,952 -$237 72% 2% 26% 18.2 18.2 

* “No impact” means that the base case product assigned to the household has greater efficiency than the
 

level indicated, so the household is not affected.
 

** Based on the payback calculation, a very small change in operating cost can result in a few extremely large
 

paybacks, which will skew the average payback. In these cases, median is probably a better indicator.
 

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Table 11.4.4 Gas-Fired Storage Water Heaters: LCC and PBP Results for Mobile 

Home Households 

EF 

Life-Cycle Cost (2008$) Life-Cycle Cost Savings Payback Period 

(years)** 

Average 

Installed 

Price 

Average 

Operating 

Cost 

Average 

LCC 

Average 

Savings 

(2008$) 

Households with 

Median Average 

Net 

Cost 

No 

Impact* 

Net 

Benefit 

0.59 $976 $3,151 $4,127 

0.62 $1,064 $2,996 $4,060 $58 23% 17% 60% 1.8 10.6 

0.63 $1,158 $2,924 $4,082 $38 35% 13% 52% 5.7 17.6 

0.64 $1,372 $2,908 $4,280 -$143 65% 9% 26% 27.6 43.0 

0.65 $1,439 $2,841 $4,280 -$143 64% 8% 28% 24.4 35.9 

0.67 $1,537 $2,669 $4,206 -$72 60% 5% 35% 18.4 23.6 

0.80 $1,750 $2,281 $4,031 $100 53% 2% 46% 11.8 13.6 

* “No impact” means that the base case product assigned to the household has greater efficiency than the
 

level indicated, so the household is not affected.
 

** Based on the payback calculation, a very small change in operating cost can result in a few extremely large
 

paybacks, which will skew the average payback. In these cases, median is probably a better indicator.
 

Table 11.4.5	 Electric Storage Water Heaters: LCC and PBP Results for Senior-Only 

Households 

EF 

Life-Cycle Cost (2008$) Life-Cycle Cost Savings Payback Period 

(years)** 

Average 

Installed 

Price 

Average 

Operating 

Cost 

Average 

LCC 

Average 

Savings 

(2008$) 

Households with 

Median Average 

Net 

Cost 

No 

Impact* 

Net 

Benefit 

0.90 $517 $2,463 $2,979 

0.91 $543 $2,424 $2,967 $7 6% 60% 34% 2.7 8.0 

0.92 $562 $2,389 $2,951 $16 10% 31% 60% 2.7 7.7 

0.93 $571 $2,370 $2,942 $23 11% 28% 61% 2.9 7.8 

0.94 $615 $2,317 $2,932 $31 20% 14% 66% 4.3 8.6 

0.95 $643 $2,281 $2,924 $38 24% 10% 66% 5.3 8.8 

2.0 $1,426 $1,506 $2,932 $30 52% 5% 43% 9.8 24.2 

2.2 $1,507 $1,386 $2,894 $68 52% 1% 48% 9.6 20.4 

* “No impact” means that the base case product assigned to the household has greater efficiency than the
 

level indicated, so the household is not affected.
 

** Based on the payback calculation, a very small change in operating cost can result in a few extremely large
 

paybacks, which will skew the average payback. In these cases, median is probably a better indicator.
 

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Table 11.4.6 Electric Storage Water Heaters: LCC and PBP Results for Low-Income 

Households 

EF 

Life-Cycle Cost (2008$) Life-Cycle Cost Savings Payback Period 

(years)** 

Average 

Installed 

Price 

Average 

Operating 

Cost 

Average 

LCC 

Average 

Savings 

(2008$) 

Households with 

Median Average 

Net 

Cost 

No 

Impact* 

Net 

Benefit 

0.90 $499 $2,802 $3,302 

0.91 $532 $2,768 $3,299 $1 8% 57% 34% 2.8 10.4 

0.92 $551 $2,736 $3,287 $9 12% 29% 59% 2.9 9.2 

0.93 $559 $2,720 $3,279 $14 13% 27% 60% 3.0 9.2 

0.94 $610 $2,671 $3,281 $12 25% 14% 62% 5.0 10.2 

0.95 $636 $2,640 $3,276 $17 29% 10% 61% 6.3 10.2 

2.0 $1,450 $1,690 $3,140 $143 49% 5% 46% 9.3 33.8 

2.2 $1,531 $1,566 $3,098 $185 49% 1% 50% 9.2 26.7 

* “No impact” means that the base case product assigned to the household has greater efficiency than the
 

level indicated, so the household is not affected.
 

** Based on the payback calculation, a very small change in operating cost can result in a few extremely large
 

paybacks, which will skew the average payback. In these cases, median is probably a better indicator.
 

Table 11.4.7	 Electric Storage Water Heaters: LCC and PBP Results for Multi-Family 

Households 

EF 

Life-Cycle Cost (2008$) Life-Cycle Cost Savings Payback Period 

(years)** 

Average 

Installed 

Price 

Average 

Operating 

Cost 

Average 

LCC 

Average 

Savings 

(2008$) 

Households with 

Median Average 

Net 

Cost 

No 

Impact* 

Net 

Benefit 

0.90 $482 $1,607 $2,089 

0.91 $521 $1,571 $2,092 -$2 11% 50% 39% 2.8 11.3 

0.92 $541 $1,545 $2,086 $1 16% 26% 59% 2.9 10.7 

0.93 $547 $1,533 $2,080 $5 17% 24% 59% 2.9 10.7 

0.94 $608 $1,485 $2,092 -$6 32% 12% 56% 5.3 12.0 

0.95 $629 $1,460 $2,089 -$2 35% 10% 55% 6.8 11.5 

2.0 $1,417 $1,047 $2,464 -$359 76% 5% 19% 23.8 69.4 

2.2 $1,497 $964 $2,461 -$357 77% 1% 22% 23.2 54.3 

* “No impact” means that the base case product assigned to the household has greater efficiency than the
 

level indicated, so the household is not affected.
 

** Based on the payback calculation, a very small change in operating cost can result in a few extremely large
 

paybacks, which will skew the average payback. In these cases, median is probably a better indicator.
 

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Table 11.4.8 Electric Storage Water Heaters: LCC and PBP Results for Mobile Home 

Households 

EF 

Life-Cycle Cost (2008$) Life-Cycle Cost Savings Payback Period 

(years)** 

Average 

Installed 

Price 

Average 

Operating 

Cost 

Average 

LCC 

Average 

Savings 

(2008$) 

Households with 

Median Average 

Net 

Cost 

No 

Impact* 

Net 

Benefit 

0.90 $484 $2,721 $3,206 

0.91 $516 $2,689 $3,205 $0 9% 53% 38% 2.8 10.6 

0.92 $538 $2,663 $3,201 $3 13% 27% 59% 3.0 10.4 

0.93 $544 $2,651 $3,195 $6 14% 25% 60% 3.1 10.3 

0.94 $602 $2,605 $3,208 -$4 29% 13% 58% 5.6 12.1 

0.95 $626 $2,579 $3,205 -$2 34% 10% 56% 7.0 11.7 

2.0 $1,469 $1,650 $3,118 $81 51% 5% 44% 9.6 28.1 

2.2 $1,549 $1,534 $3,083 $116 52% 1% 47% 9.5 25.6 

* “No impact” means that the base case product assigned to the household has greater efficiency than the
 

level indicated, so the household is not affected.
 

** Based on the payback calculation, a very small change in operating cost can result in a few extremely large
 

paybacks, which will skew the average payback. In these cases, median is probably a better indicator.
 

11.4.2 Direct Heating Equipment 

Tables 11.4.9 through 11.4.12 below summarize the LCC results for gas wall fan DHE and 

gas wall gravity DHE. The LCC results provide the average installed price, average lifetime 

operating cost (discounted), average life-cycle cost, average life-cycle savings, the percentage of 

consumers that are burdened with net costs, realize net savings, or are not impacted, and the median 

and average payback period. 

Table 11.4.9 Gas Wall Fan DHE: LCC and PBP Results for Senior-Only Households 

AFUE 

(%) 

Life-Cycle Cost (2008$) Life-Cycle Cost Savings Payback Period 

(years)** 

Average 

Installed 

Price 

Average 

Operating 

Cost 

Average 

LCC 

Average 

Savings 

(2008$) 

Households with 

Median Average 

Net 

Cost 

Net 

Benefit 

No 

Impact* 

74 $1,752 $6,399 $8,150 

75 $1,805 $6,100 $7,905 $103 3% 39% 59% 3.0 2.8 

76 $1,829 $6,025 $7,854 $126 4% 42% 54% 3.6 8.0 

77 $1,871 $5,952 $7,824 $152 22% 64% 13% 5.2 14.0 

80 $1,997 $5,754 $7,751 $221 31% 64% 4% 7.2 19.0 

* “No impact” means that the base case product assigned to the household has greater efficiency than the
 

level indicated, so the household is not affected.
 

** Based on the payback calculation, a very small change in operating cost can result in a few extremely large
 

paybacks, which will skew the average payback. In these cases, median is probably a better indicator.
 

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Table 11.4.10 Gas Wall Fan DHE: LCC and PBP Results for Low-Income Households
 

AFUE 

(%) 

Life-Cycle Cost (2008$) Life-Cycle Cost Savings Payback Period 

(years)** 

Average 

Installed 

Price 

Average 

Operating 

Cost 

Average 

LCC 

Average 

Savings 

(2008$) 

Households with 

Median Average 

Net 

Cost 

Net 

Benefit 

No 

Impact* 

74 $1,752 $7,672 $9,424 

75 $1,805 $7,411 $9,217 $86 0% 41% 59% 3.3 3.2 

75 $1,829 $7,319 $9,149 $118 1% 45% 54% 3.6 3.7 

77 $1,872 $7,230 $9,102 $159 17% 70% 13% 5.1 9.0 

80 $1,998 $6,989 $8,987 $268 28% 68% 4% 7.0 12.1 

* “No impact” means that the base case product assigned to the household has greater efficiency than the
 

level indicated, so the household is not affected.
 

** Based on the payback calculation, a very small change in operating cost can result in a few extremely large
 

paybacks, which will skew the average payback. In these cases, median is probably a better indicator.
 

Table 11.4.11 Gas Wall Gravity DHE: LCC and PBP Results for Senior-Only Households 

AFUE 

(%) 

Life-Cycle Cost (2008$) Life-Cycle Cost Savings Payback Period 

(years)** 

Average 

Installed 

Price 

Average 

Operating 

Cost 

Average 

LCC 

Average 

Savings 

(2008$) 

Households with 

Median Average 

Net 

Cost 

Net 

Benefit 

No 

Impact* 

64 $1,371 $6,349 $7,720 

66 $1,428 $6,178 $7,606 $35 9% 22% 70% 5.1 13.1 

68 $1,464 $6,017 $7,481 $109 14% 46% 41% 4.0 9.0 

71 $1,540 $5,792 $7,332 $257 27% 73% 0% 4.8 10.6 

72 $1,814 $5,567 $7,381 $209 42% 58% 0% 9.2 26.3 

* “No impact” means that the base case product assigned to the household has greater efficiency than the
 

level indicated, so the household is not affected.
 

** Based on the payback calculation, a very small change in operating cost can result in a few extremely large
 

paybacks, which will skew the average payback. In these cases, median is probably a better indicator.
 

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Table 11.4.12 Gas Wall Gravity DHE: LCC and PBP Results for Low-Income Households
 

AFUE 

(%) 

Life-Cycle Cost (2008$) Life-Cycle Cost Savings Payback Period 

(years)** 

Average 

Installed 

Price 

Average 

Operating 

Cost 

Average 

LCC 

Average 

Savings 

(2008$) 

Households with 

Median Average 

Net 

Cost 

Net 

Benefit 

No 

Impact* 

64 $1,371 $7,608 $8,979 

66 $1,428 $7,398 $8,826 $47 7% 24% 70% 4.3 8.1 

68 $1,465 $7,200 $8,665 $143 11% 49% 40% 3.5 6.1 

71 $1,540 $6,924 $8,465 $343 22% 78% 0% 4.1 7.6 

72 $1,822 $6,755 $8,577 $231 43% 57% 0% 10.2 11.1 

* “No impact” means that the base case product assigned to the household has greater efficiency than the
 

level indicated, so the household is not affected.
 

** Based on the payback calculation, a very small change in operating cost can result in a few extremely large
 

paybacks, which will skew the average payback. In these cases, median is probably a better indicator.
 

11.5 DISCUSSION 

For gas-fired storage water heaters, the impacts of the proposed standard (0.63 EF) are 

roughly the same for the senior-only sample and the low-income sample as they are for the full 

household sample for this product class. For the multi-family sample and the mobile home 

sample, the average LCC savings are somewhat lower than they are for the full household 

sample, and the fraction of households experiencing a cost (negative savings) is higher. In both 

cases, however, the average LCC savings is positive, and more than half of the households would 

experience an LCC benefit. 

Because the impacts of standards on the subgroups are of particular interest for electric 

storage water heaters, DOE compares the impacts among the subgroups with the impacts on all 

consumers for two considered standard levels (0.95 EF and 2.0 EF) in Figures 11.5.2 through 11.5.4. 

The impacts of the proposed standard (0.95 EF) are roughly the same for the senior-only sample 

as they are for the full household sample for this product class. The impacts are slightly less 

positive for the low-income sample, and they are much less positive for the multi-family sample 

and the mobile home sample. The average LCC savings are -$2 for the latter two subgroups, but 

in both cases more than half of the households would experience an LCC benefit (refer back to 

Tables 11.4.7 and 11.4.8). 

In the case of a standard at 2.0 EF, the average LCC savings are lower for all of the 

subgroups than for the full household sample for this product class. The multi-family subgroup 

would experience an average negative LCC savings of $359 (i.e., the average LCC would 

increase), and three-fourths of the households would experience a net cost. For the other 

subgroups, the fraction of households that would experience a net cost is close to or just above 

50 percent, which is slightly higher than for the full household sample. The impact on the multifamily subgroup is primarily due to the lower hot water use among these households. 

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-$400 

-$300 

-$200 

-$100 

$0 

$100 

$200 

$300 

Senior-Only Low-Income Multi-Family Mobile Homes All Households 

Average LCC Savings (2008$)

0.95 EF 

2.00 EF 

Figure 11.5.1 Electric Storage Water Heaters: Average LCC 

Savings by Subgroup 

0% 

10% 

20% 

30% 

40% 

50% 

60% 

70% 

80% 

Senior-Only Low-Income Multi-Family Mobile Homes All Households 

Percentage of Households with Net Cost (%)

0.95 EF 

2.00 EF 

Figure 11.5.2 Electric Storage Water Heaters: Households With 

Net Cost by Subgroup 

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0 

5 

10 

15 

20 

25 

Median Payback Period (years)

0.95 EF 

2.00 EF 

Senior-Only Low-Income Multi-Family Mobile Homes All Households 

Figure 11.5.3 Electric Storage Water Heaters: Median Payback 

Period by Subgroup 

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REFERENCES
 

1.	 U.S. Department of Energy - Energy Information Administration, Residential Energy 

Consumption Survey: 2005 Public Use Data Files, 2005. 

<http://www.eia.doe.gov/emeu/recs/recspubuse05/pubuse05.html> 

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