8A

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APPENDIX 8A. USER INSTRUCTION S FOR LIFE

- CYCLE COST AND PAYBA CK

PERIOD SPREADSHEETS

TABLE OF CO NTENTS

8A

- 1 DEFINITIONS

................................ ................................ ................................ ........ 8A

- 1

8A

- 2 BASIC INSTRUCTIONS

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APPENDIX 8

- A.8A

- 1

APPENDIX 8A. USER INSTRUCTION S FOR LIFE

- CYCLE COST AND PAYBA CK

PERIOD SPREADSHEETS

8A

- 1 DEFINITIONS

The interested reader can examine

, reproduce , and adjust detailed results of the U.S. Department of Energy’s (DOE’s) life

- cycle cost ( LCC ) and payback period ( PBP ) analysis for portable air conditioners by using Microsoft Excel spreadsheet s available on D OE’s website at http://www1.eere.energy.gov/buildings/appliance_standards/residential/dehumidifiers.html

.

The latest version of the spreadsheet workbook was tested using Microsoft Excel 20 10

. The LCC workbook for residential and commercial portable air conditioners (ACs) comprises the following workshe ets.

Summary

– Residential Presents analytical results pertaining to a verage LCC ; LCC

s avings ; and simple PBP for residential portable ACs

. F or each efficiency level considered

, a summary table provides i nstalled

p rice ; average life time o perating c ost ; first

- year operating cost;

LCC ; average savings ; and the percentage of households that

w ould incur a net cost from the efficiency level

. The summary sheet also has an interactive component that enables user s to generate their own LCC calculation and results for an individual purchase by stipulating the following LCC inputs

.

 G eographical location (select from 321 U.S. locations ).

 Hours of operation spent in cooling and fan

- only mode (total ≤8

, 760 ).

 Lifetime (3 to 33 years ).

 Discount rate (0 % to 100 %).

 Base

- case efficiency level (0 through 4 ).

 S tandards

- case efficiency level (0 through 4 ).

 R ebound effect (0 % to 100%)

.

 C onstant cooling load (true or false ).

 P rice learning (true or false)

.

 P urchaser index (which enable s the user to select a purchaser from the purchaser index on the R ECS sample

worksheet ).

Summary

– Commercial Presents analytical results pertaining to average LCC; LCC savings; and simple PBP for commercial portable ACs . For each efficiency level considered, a summary table provides installed price; average lifetime operating cost; LCC; average savings; and the percentage of commercial purchases that would incur a net cost from the efficiency level. The summary sheet also has an interactive component that enables users to generate their own8A

- 2 LCC calculation and results for an individual purchase by stipulating the following inputs

.

 G eographical location (select from 321 U.S. locations ).

 Hours of operation sp ent in cooling mode and fan

- only mode (total ≤ 8

, 760 ).

 Lifetime (3 to 33 years ).

 Discount rate (0 % to 100 %).

 B ase

- case efficiency level (0 through 4 ).

 S tandards

- case efficiency level (0 through 4 ).

 R ebound effect (0 % to 100%)

.

 C onstant cooling load (true or false ).

 P rice learning (true or false ).

 P urchaser index (which enable s the user to select a purchaser from the purchaser index on the CBECS sample

worksheet ).

R esidential Sample Presents the 10 ,000

- purchaser sample used to calculate the LCC for the residential sector. The sample is based on households that reported having room or window/wall air conditioners in the RECS 2009 survey (12,083 housing units surveyed)

. Identifies the parameters exported to the LCC and PBP analysis

, including (1) geographic location ( a determinant of electricity price and sales

tax ); (2) lifetime ; (3) square footage to be cooled; (4) number of operating hours for cooling ( fan operating and stand

- by mode ); and ( 5 ) discount rate. During a simulation, DOE uses th o se characteristics to determine the analysis parameters.

Commercial Sample Presents the 10,000 purchaser sample used to calculate the LCC for the commercial sector. The sample is based on

commercial/institutional buildings that reported having room or window/wall air conditioners in the CBECS 2003 survey (5,215 buildings surveyed). Identifies the parameters exported to the LCC and PBP analysis

, including (1) geographic location ( a determinant

of electricity price and sales tax ); (2) lifetime; (3) square footage to be cooled; (4) number of operating hours for cooling (fan and

stand

- by mode); and (5) discount rate. During a simulation, DOE

uses these characteristics to determine the a nalysis parameters.

Base

- Case Efficiency Provides (1) market shares of efficiency levels in the base case; Distribution (2) percent of purchasers by geographic location for commercial and residential sectors; and (3) distribution of portable AC s by

residential and commercial sectors.

Equipment Prices Gives manufacturer product cost and consumer purchase price before sales tax (both in $2013) for every efficiency level. Includes the assumptions used for applying markups and sales tax. Presents8A

- 3 sales tax by RECS states/groups of states as well as by census

division.

Learning Curve Learning curve factors to forecast future product price s.

Lifetime Presents the average lifetime, in years, of portable ACs for both residential and commercial application s (10 years for both). Includes the Weibull parameters used for the survival function, and a graph of the Weibull retirement function for portable ACs

.

Discount Rate Presents data used to develop average re al discount rates and a

distribution of discount rates for residential and commercial purchases . Rates are for the various types of debt and equity used to purchase products installed in homes and businesses

. Appendix

8

- E gives a detailed description of DO E's development of discount

rates.

Electricity Forecast

– Res. Contains the regional price forecasts in 2013$ for electricity , which

were used in the LCC and PBP analysis.

Electricity Forecast

– Contains the regional price forecasts in 2013$ for electricity , which

Comm. were used in the LCC and PBP analysis.

Location Lookup Contains the lookup table for matching weather station ID and geographic location

.

8A

- 2 BASIC INSTRUCTIONS

Basic instructions for operating the LCC spreadsheet are provided here

.

1. After downloading the LCC spreadsheet file from DOE’s website, use Microsoft Excel to open it. At the bottom of the workbook, click on the tab for the sheet

labeled Summary

- Res or Summary

- Comm

, depending on the economic sector of

interest (resident ial or commercial).

2. Use Excel’s “View/Zoom” command in the top menu bar to change the size of the display so that it fits your monitor.

3. Use the graphical interface in the spreadsheet to choose parameters or enter data. You can change the default choices f or the inputs listed under " Purchaser parameters.” To change a default input, select the desired value from the drop

- down choices by the input box or enter the number manually where applicable

. 4. After you have select ed the desired parameters, t he spreadsheet will automatically generate updated LCC results based on the new simulation . Results are provided

under “Calculations.”