11-i

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 New Construction and Replacement Households.......................................................... 11-2

11.2.5 Distribution of Subgroup Households with Central Air Conditioners or Heat 

Pumps............................................................................................................................. 11-2

11.2.6 Distribution of Subgroup Households with Furnaces.................................................... 11-3

11.3 CENTRAL AIR CONDITIONER AND HEAT PUMP RESULTS ............................. 11-3

11.3.1 Senior-Only and Low-Income Subgroup Results.......................................................... 11-4

11.3.2 Comparison of Senior-Only and Low-Income Households to the General 

Population ...................................................................................................................... 11-6

11.4 FURNACE RESULTS................................................................................................... 11-7

11.4.1 Senior-Only, Low-Income, and Multi-Family Subgroup Results ................................. 11-8

11.4.2 Comparison of Senior-Only, Low-Income, and Multi-Family Households to the 

General Population....................................................................................................... 11-11

11.4.3 Replacement and New Construction Subgroup Results.............................................. 11-12

LIST OF TABLES

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

Table 11.2.2 Household Population Data for Air Conditioning Products................................. 11-3

Table 11.2.3 Household Population Data for Furnace Products................................................ 11-3

Table 11.3.1 National LCC and PBP Results for Split-System Air Conditioners (CoilOnly) by Efficiency Level (Seasonal Energy Efficiency Ratio (SEER) 

Value): Senior-Only Households....................................................................... 11-4

Table 11.3.2 National LCC and PBP Results for Split-System Air Conditioners (BlowerCoil) by Efficiency Level (SEER Value): Senior-Only Households................. 11-5

Table 11.3.3 National LCC and PBP Results for Split-System Air Conditioners (CoilOnly) by Efficiency Level (SEER Value): Low-Income Households............... 11-5

Table 11.3.4 National LCC and PBP Results for Split-System Air Conditioners (BlowerCoil) by Efficiency Level (SEER Value): Low-Income Households................ 11-6

Table 11.3.5 Split-System Air Conditioners (Coil-Only): Comparison of Average LCC 

Savings and Median Payback Period for Consumer Subgroups and All 

Households, Nation............................................................................................ 11-6

Table 11.3.6 Split-System Air Conditioners (Blower-Coil): Comparison of Average LCC 

Savings and Median Payback Period for Consumer Subgroups and All 

Households, Nation............................................................................................ 11-7

Table 11.4.1 Non-Weatherized Gas Furnaces: LCC and PBP Results for Senior-Only 

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

Table 11.4.2 Non-Weatherized Gas Furnaces: LCC and PBP Results for Low-Income 

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

Table 11.4.3 Non-Weatherized Gas Furnaces: LCC and PBP Results for Multi-Family 

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

Table 11.4.4 Non-Weatherized Gas Furnaces: Comparison of Average LCC Savings for 

Consumer Subgroups and All Households...................................................... 11-11

Table 11.4.5 Non-Weatherized Gas Furnaces: LCC and PBP Results for Replacement ........ 11-12

Table 11.4.6 Non-Weatherized Gas Furnaces: LCC and PBP Results for New 

Construction..................................................................................................... 11-13

Table 11.4.7 Non-Weatherized Gas Furnaces: Comparison of Average LCC Savings for 

Consumer Subgroups (New and Replacement Markets) and All 

Households....................................................................................................... 11-14
11-1

CHAPTER 11. LIFE-CYCLE COST SUBGROUP ANALYSIS

11.1 INTRODUCTION

The consumer subgroup analysis evaluates impacts on any identifiable groups or 

customers who may be disproportionately affected by any national energy conservation standard. 

The U.S. Department of Energy (DOE) evaluates impacts on particular subgroups of consumers 

primarily by analyzing the life-cycle cost (LCC) impacts and payback period (PBP) for those 

consumers from the considered energy efficiency levels. DOE determines the impact on 

consumer subgroups using the LCC spreadsheet models for central air conditioner and furnaces. 

Chapter 8 explains in detail the inputs to the models used in determining LCC impacts and PBPs. 

For the notice of proposed rulemaking (NOPR), DOE evaluated impacts on low-income 

and small-business consumers and households occupied solely by senior citizens (senior-only 

households) for national standards. However, in the sample from the DOE Energy Information 

Administration (EIA) Residential Energy Consumption Survey of 2005 (RECS)1

For the NOPR analysis, DOE evaluated the impacts of the considered energy efficiency 

levels for non-weatherized gas furnaces on low-income consumers and senior citizens (i.e., 

senior-only households). DOE did not analyze these subgroups for mobile home gas furnaces or 

oil-fired furnaces because of the small sample sizes in the 2005 RECS database. In response to 

comments, for non-weatherized gas furnaces, DOE also analyzed the impacts for three other 

subgroups: (1) multi-family housing units; (2) new homes; and (3) replacement applications.

used for the 

subgroup analysis, the number of low-income and senior-only households with a central air 

conditioner was too small to produce reliable results at the regional level, and the number of lowincome and senior-only households with a heat pump was too small to produce reliable results at 

either the national or the regional level. Accordingly, DOE performed the analysis for these 

subgroups only at the national level and only for air conditioners.

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

the LCC and PBP analyses for the considered subgroups.

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 

2005 RECS, senior-only households comprise 17 percent of the country’s households.

11.2.2 Low-Income Households

As defined in the RECS survey, low-income households 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 low-income households from 

the RECS sample. The RECS survey classifies 15 percent of the country’s households as lowincome.
11-2

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

Average Income 

$

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 two or more units. According to 

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

11.2.4 New Construction and Replacement Households

New construction and replacement installation cost differentials between baseline and 

more efficient non-weatherized gas furnaces vary significantly. Therefore, for non-weatherized

gas furnaces, DOE decided to examine the new construction and replacement household 

subgroups, which represent on average about 25 percent of non-weatherized gas furnace 

shipments.

11.2.5 Distribution of Subgroup Households with Central Air Conditioners or Heat Pumps 

Overall, the RECS database for 2005 contains 4,382 households nationally. Of these, 

1,854 have central air conditioners and 339 have heat pumps. Table 11.2.2 shows that the 

household sample sizes for heat pumps become small at the regional level for the hot-dry and 

rest-of-country regions, even for the general population; for low-income and senior-only 

households, the regional sample sizes drop below 30 observations for the hot-dry region, even 

for air conditioners. The sample sizes fall into the single digits for heat pumps. It is likely that 

results for samples this small would be misleading. Therefore, DOE decided to report 

comparisons between the subgroup populations and the general populations only for air 

conditioners and only at the national level.
11-3

Table 11.2.2 Household Population Data for Air Conditioning Products

General Population Low-Income Households Senior-Only Households

Region Number Population 

Weights

Regional 

Fraction

Number Population 

Weights

Regional 

Fraction

Number Population 

Weights

Regional 

Fraction

Households with Air Conditioners

HotHumid 752 21,906,298 0.430 100 2,687,687 0.547 112 3,605,539 0.419

Hot-Dry 236 6,164,449 0.121 23 610,546 0.124 29 842,193 0.098

Rest of 

Country 866 22,908,728 0.449 85 1,612,655 0.328 152 4,147,987 0.483

Nation 1854 50,979,475 1.000 208 4,910,887 1.000 293 8,595,719 1.000

Households with Heat Pumps

HotHumid 245 7,509,171 0.752 18 476,258 0.766 35 1,034,320 0.692

Hot-Dry 34 837,752 0.084 3 71,349 0.115 3 79,020 0.053

Rest of 

Country 60 1,645,103 0.165 3 74,269 0.119 13 382,183 0.256

Nation 339 9,992,026 1.000 24 621,877 1.000 51 1,495,523 1.000

11.2.6 Distribution of Subgroup Households with Furnaces

Of the 4,382 households in the 2005 RECS database, 1,726 have non-weatherized gas 

furnaces, 109 have manufactured home furnaces, and 150 have oil-fired furnaces. Table 11.2.3

shows the household sample sizes for all furnaces. The sample sizes for manufactured home gas 

furnaces and oil-fired furnaces are small; it is likely that results for samples this small would be 

misleading. Therefore, DOE decided to report comparisons between the subgroup populations 

and the general populations only for non-weatherized gas furnaces.

Table 11.2.3 Household Population Data for Furnace Products

General Population Low-Income Households Senior-Only Households Multi-Family

Region Number Population 

Weights

Number Population 

Weights

Number Population 

Weights

Number Population 

Weights

Households with Non-Weatherized Gas Furnaces

Nation 1726 45,210,239 198 3,954,063 262 7,364,525 181 4,614,109 

North 990 26,947,084 127 2,498,923 157 4,496,967 115 2,903,353 

South 736 18,263,155 71 1,455,140 105 2,867,558 66 1,710,756 

Households with Manufactured Home Gas Furnaces

Nation 109 2,511,207 26 453,112 17 337,990 NA NA

North 58 1,214,502 11 158,582 6 122,430 NA NA

South 51 1,296,705 15 294,530 11 215,560 NA NA

Households with Oil-Fired Furnaces

Nation 150 3,006,206 22 268,446 36 640,941 3 43,570

11.3 CENTRAL AIR CONDITIONER AND HEAT PUMP RESULTS

Table 11.3.1 through Table 11.3.4 summarize the LCC and PBP results for low-income 

consumers and senior citizens for split-system air conditioners. Table 11.3.5 and Table 11.3.6

compare the average LCC savings at each efficiency level for the two consumer subgroups with 

the average LCC savings and median PBP for the entire sample for each representative product 
11-4

class. The analysis for low-income and senior-only household impacts did not show 

substantially different impacts on these subgroups in comparison with the general population. 

The senior-only and low-income households have lower cooling energy use than the majority of 

households and therefore experience slightly lower savings and slightly longer PBPs from 

adopting more efficient equipment. This likely is because seniors and low-income residents tend 

to live in smaller houses than the general population. The differences in LCC savings among 

senior-only households, low-income households, and all households are small in any case for the 

range in which they are positive for the general population (generally less than $70 or about 1.0

percent for coil-only units and up to about $175 or about 2.5 percent for blower-coil units). 

11.3.1 Senior-Only and Low-Income Subgroup Results

Table 11.3.1 National LCC and PBP Results for Split-System Air Conditioners (Coil-Only) 

by Efficiency Level (Seasonal Energy Efficiency Ratio (SEER) Value): Senior-Only 

Households

Efficiency

Level 

SEER

Life-Cycle Cost Life-Cycle Cost Savings Median 

Payback 

Period 

years

Average 

Installed 

Cost 

2009$

Average 

Discounted 

Operating 

Cost 

2009$

Average 

LCC 

2009$

Average 

Savings 

2009$

% of Households with

Net

Cost

No 

Impact

Net 

Benefit

13 (Baseline) 1,996 4,010 6,007 n/a 0 100 0 n/a

13.5 2,044 3,942 5,986 21 14 75 11 13.0

14 2,099 3,884 5,984 9 47 27 26 18.1

14.5 2,161 3,832 5,993 (1) 51 23 25 20.0

15 2,720 3,791 6,511 (519) 80 16 4 95.0

15.5 3,286 3,757 7,044 (1,017) 89 10 2 100.0+

16 3,376 3,732 7,108 (1,059) 90 8 2 100.0+

16.5 3,457 3,720 7,178 (1,052) 97 1 3 100.0+

17 3,548 3,715 7,263 (1,132) 97 0 3 100.0+

18** 3,626 3,717 7,343 (1,212) 97 0 3 100.0+

* Values in parentheses denote negative values.

** Varies by capacity of equipment: 2-ton units are 18 SEER, 3-ton units are 17 SEER, 5-ton units are 16 SEER. 
11-5

Table 11.3.2 National LCC and PBP Results for Split-System Air Conditioners (BlowerCoil) by Efficiency Level (SEER Value): Senior-Only Households

Efficiency

Level 

SEER

Life-Cycle Cost Life-Cycle Cost Savings Median 

Payback 

Period 

years

Average 

Installed 

Cost 

2009$

Average 

Discounted

Operating 

Cost 

2009$

Average 

LCC 

2009$

Average 

Savings 

2009$

% of Households with

Net

Cost

No 

Impact

Net 

Benefit

13 (Baseline) 2,974 4,005 6,979 n/a 0 100 0 n/a

13.5 3,035 3,801 6,968 11 11 82 7 15.2

14 3,099 3,933 6,965 7 35 45 19 17.0

14.5 3,161 3,867 6,965 7 37 42 20 17.1

15 3,223 3,804 6,969 1 41 37 22 17.9

15.5 3,290 3,746 6,983 (13) 46 32 22 19.3

16 3,358 3,694 7,004 (33) 48 31 21 20.8

16.5 3,426 3,646 7,032 (60) 54 25 20 23.0

17 3,497 3,606 7,066 (94) 56 25 19 24.7

18 3,645 3,570 7,154 (170) 67 15 18 30.8

19 3,771 3,509 7,236 (240) 75 8 17 36.5

20 3,902 3,466 7,334 (330) 80 5 15 42.1

21 4,041 3,432 7,447 (436) 84 3 13 49.7

22 4,185 3,406 7,573 (553) 87 1 12 58.2

23 4,243 3,388 7,627 (607) 88 1 11 61.5

24.5** 4,333 3,384 7,715 (696) 88 1 11 68.2

* Values in parentheses denote negative values.

** Varies by capacity of equipment: 2-ton units are 24.5 SEER, 3-ton units are 22 SEER, 5-ton units are 18 SEER.

Table 11.3.3 National LCC and PBP Results for Split-System Air Conditioners (Coil-Only) 

by Efficiency Level (SEER Value): Low-Income Households

Efficiency

Level 

SEER

Life-Cycle Cost Life-Cycle Cost Savings Median 

Payback 

Period 

years

Average 

Installed 

Cost 

2009$

Average 

Discounted 

Operating 

Cost 

2009$

Average 

LCC 

2009$

Average 

Savings 

2009$

% of Households with

Net

Cost

No 

Impact

Net

Benefit

13 (Baseline) 1,926 4,172 6,098 n/a 0 100 0 n/a

13.5 1,972 4,095 6,067 33 13 75 12 12.2

14 2,025 4,028 6,054 24 45 27 28 17.0

14.5 2,083 3,967 6,050 27 50 23 27 18.6

15 2,637 3,917 6,554 (480) 80 16 5 91.3

15.5 3,197 3,874 7,072 (966) 88 10 3 100.0+

16 3,279 3,840 7,119 (992) 89 8 4 100.0+

16.5 3,363 3,820 7,183 (985) 95 1 5 100.0+

17 3,455 3,808 7,263 (1,059) 95 0 5 100.0+

18** 3,559 3,794 7,354 (1,150) 95 0 5 100.0+

*Values in parentheses denote negative values.

*Varies by capacity of equipment: 2-ton units are 18 SEER, 3-ton units are 17 SEER, 5-ton units are 16 SEER. 
11-6

Table 11.3.4 National LCC and PBP Results for Split-System Air Conditioners (BlowerCoil) by Efficiency Level (SEER Value): Low-Income Households

Efficiency

Level 

SEER

Life-Cycle Cost Life-Cycle Cost Savings Median 

Payback 

Period 

years

Average 

Installed 

Cost

$2009

Average 

Operating 

Cost

$2009 

Average 

LCC

$2009

Average 

Savings

$2009

% of Households with

Net

Cost

No 

Impact

Net 

Benefit

13 (Baseline) 2,873 4,171 7,044 n/a 0 100 0 n/a

13.5 2,932 4,090 7,022 25 11 82 7 14.7

14 2,993 4,015 7,009 22 34 45 20 16.3

14.5 3,052 3,944 6,997 33 36 42 22 16.1

15 3,111 3,879 6,990 37 40 37 23 16.7

15.5 3,174 3,819 6,993 31 44 32 24 17.8

16 3,238 3,764 7,003 21 46 31 23 19.0

16.5 3,303 3,718 7,020 2 52 25 22 21.3

17 3,368 3,675 7,043 (20) 54 25 21 23.0

18 3,507 3,602 7,109 (85) 65 15 20 28.5

19 3,638 3,547 7,185 (154) 73 8 19 33.5

20 3,775 3,502 7,277 (242) 78 5 17 39.3

21 3,919 3,467 7,387 (346) 81 3 16 45.8

22 4,069 3,440 7,509 (461) 85 1 14 53.4

23 4,146 3,426 7,572 (525) 85 1 14 56.7

24.5** 4,266 3,411 7,677 (630) 87 1 12 62.1

*Values in parentheses denote negative values.

**Varies by capacity of equipment: 2-ton units are 24.5 SEER, 3-ton units are 22 SEER, 5-ton units are 18 SEER.

11.3.2 Comparison of Senior-Only and Low-Income Households to the General 

Population

Table 11.3.5 Split-System Air Conditioners (Coil-Only): Comparison of Average LCC 

Savings and Median Payback Period for Consumer Subgroups and All Households, Nation

Efficiency 

Level 

SEER

LCC Savings

2009$

Median Payback Period

years

Senior Low 

Income

General 

Population

Senior Low 

Income

General 

Population

13.5 21 33 55 13.0 12.2 9.1

14 9 24 51 18.1 17.0 12.5

14.5 (1) 27 67 20.0 18.6 13.6

15 (519) (480) (433) 95.0 91.3 62.4

15.5 (1,017) (966) (915) 100.0+ 100.0+ 97.9

16 (1,059) (992) (939) 100.0+ 100.0+ 89.6

16.5 (1,052) (985) (925) 100.0+ 100.0+ 94.1

17 (1,132) (1,059) (990) 100.0+ 100.0+ 100.0+

18** (1,212) (1,150) (1,046) 100.0+ 100.0+ 100.0+

*Values in parentheses denote negative values.

** Varies by size of equipment: 2-ton units are 18 SEER, 3-ton units are 17 SEER, 5-ton units are 16 SEER.
11-7

Table 11.3.6 Split-System Air Conditioners (Blower-Coil): Comparison of Average LCC 

Savings and Median Payback Period for Consumer Subgroups and All Households, Nation

Efficiency 

Level

SEER

LCC Savings

2009$

Median Payback Period

years

Senior Low 

Income

General 

Population

Senior Low 

Income

General 

Population

13.5 11 25 46 15.2 14.7 11.4

14 7 22 49 17.0 16.3 12.6

14.5 7 33 76 17.1 16.1 12.6

15 1 37 92 17.9 16.7 13.0

15.5 (13) 31 96 19.3 17.8 13.8

16 (33) 21 96 20.8 19.0 14.6

16.5 (60) 2 82 23.0 21.3 16.1

17 (94) (20) 66 24.7 23.0 17.2

18 (170) (85) 6 30.8 28.5 21.1

19 (240) (154) (52) 36.5 33.5 24.9

20 (330) (242) (125) 42.1 39.3 28.1

21 (436) (346) (214) 49.7 45.8 32.1

22 (553) (461) (316) 58.2 53.4 36.4

23 (607) (525) (355) 61.5 56.7 38.2

24.5** (696) (630) (421) 68.2 62.1 41.0

*Values in parentheses denote negative values.

** Varies by size of equipment: 2-ton units are 24.5 SEER, 3-ton units are 22 SEER, 5-ton units are 18 SEER. 

11.4 FURNACE RESULTS

Table 11.4.1 through Table 11.4.4 summarize the LCC and PBP results for nonweatherized gas furnaces for low-income, senior-only, and multi-family households with those 

for all households. The senior and low-income households show somewhat higher LCC savings 

from more efficient furnaces than the general population. In contrast, the multi-family 

households show lower LCC savings due to generally higher installation costs and lower heating 

energy use.

Table 11.4.5 through Table 11.4.7 summarize the LCC and PBP results for nonweatherized gas furnaces for new homes and replacement applications with those for all 

households. The households in new homes show significantly higher LCC savings, because their 

average installation costs are lower, while the households in replacement applications show 

lower, but still positive, LCC savings compared to the general population. The latter result is 

primarily due to increased installation costs in some replacement applications.
11-8

11.4.1 Senior-Only, Low-Income, and Multi-Family Subgroup Results

Table 11.4.1 Non-Weatherized Gas Furnaces: LCC and PBP Results for Senior-Only 

Households

Efficiency 

Level

AFUE* Life-Cycle Cost Life-Cycle Cost Savings Median 

Payback 

Period 

years

Average 

Installed 

Cost 

2009$

Average 

Discounted 

Operating 

Cost 

2009$

Average 

LCC 

2009$

Average 

Savings 

2009$

% of Households with

Net

Cost

No 

Impact

Net 

Benefit

National

Baseline 80 1,762 11,171 12,932 N/A 0 100 0 N/A

1 90 2,316 10,067 12,381 177 23 52 25 13.1

2 92 2,377 9,871 12,251 245 24 42 35 9.9

3 95 2,521 9,592 12,112 349 31 17 51 9.9

4 98 2,784 9,456 12,238 222 60 0 39 17.5

North

Baseline 80 1,894 13,005 14,899 N/A 0 100 0 N/A

1 90 2,440 11,708 14,148 201 8 72 19 8.4

2 92 2,502 11,478 13,977 273 9 57 34 6.6

3 95 2,647 11,150 13,797 410 18 24 58 8.3

4 98 2,903 10,999 13,901 307 55 1 44 14.8

South

Baseline 80 1,552 8,297 9,840 N/A 0 100 0 N/A

1 90 2,119 7,496 9,605 139 46 22 33 21.0

2 92 2,180 7,345 9,526 200 47 17 36 18.8

3 95 2,320 7,147 9,464 252 53 7 41 18.2

4 98 2,596 7,037 9,627 89 69 0 32 26.3

*AFUE = annual fuel utilization efficiency.
11-9

Table 11.4.2 Non-Weatherized Gas Furnaces: LCC and PBP Results for Low-Income 

Households

Efficiency 

Level

AFUE Life-Cycle Cost Life-Cycle Cost Savings Median 

Payback 

Period 

years

Average 

Installed 

Cost 

2009$

Average 

Discounted 

Operating 

Cost 

2009$

Average 

LCC 

2009$

Average 

Savings 

2009$

% of Households with

Net

Cost

No 

Impact

Net 

Benefit

National

Baseline 80 1,718 10,950 12,668 N/A 0 100 0 N/A

1 90 2,306 9,876 12,182 163 22 54 24 13.0

2 92 2,366 9,683 12,050 228 22 43 34 9.5

3 95 2,505 9,410 11,915 334 30 18 52 9.9

4 98 2,766 9,292 12,057 191 60 0 40 17.9

North

Baseline 80 1,839 12,295 14,134 N/A 0 100 0 N/A

1 90 2,445 11,082 13,527 175 9 71 19 9.4

2 92 2,507 10,864 13,371 242 10 57 33 7.2

3 95 2,650 10,554 13,204 367 20 24 57 8.5

4 98 2,905 10,438 13,343 229 58 1 42 16.5

South

Baseline 80 1,505 8,590 10,094 N/A 0 100 0 N/A

1 90 2,062 7,759 9,821 143 44 23 33 19.6

2 92 2,120 7,612 9,732 206 44 18 37 17.1

3 95 2,249 7,402 9,651 276 49 8 43 16.4

4 98 2,521 7,280 9,802 125 64 0 36 22.6
11-10

Table 11.4.3 Non-Weatherized Gas Furnaces: LCC and PBP Results for Multi-Family 

Households

Efficiency 

Level

AFUE Life-Cycle Cost Life-Cycle Cost Savings Median 

Payback 

Period 

years

Average 

Installed 

Cost 

2009$

Average 

Discounted 

Operating 

Cost 

2009$

Average 

LCC 

2009$

Average 

Savings 

2009$

% of Households with

Net

Cost

No 

Impact

Net 

Benefit

National

Baseline 80 1,760 7,272 9,032 N/A 0 100 0 N/A

1 90 2,372 6,594 8,966 (45) 30 54 16 24.6

2 92 2,431 6,471 8,903 (22) 32 43 26 17.0

3 95 2,564 6,297 8,861 7 44 17 39 15.1

4 98 2,830 6,269 9,099 (230) 77 0 22 28.6

North

Baseline 80 1,835 9,373 11,209 N/A 0 100 0 N/A

1 90 2,471 8,475 10,947 63 13 73 15 13.9

2 92 2,532 8,313 10,845 104 14 58 28 9.8

3 95 2,669 8,082 10,751 176 29 23 48 11.3

4 98 2,921 8,033 10,954 (26) 72 1 28 23.2

South

Baseline 80 1,634 3,753 5,387 N/A 0 100 0 N/A

1 90 2,205 3,442 5,647 (226) 58 22 20 50.5

2 92 2,263 3,386 5,650 (232) 61 17 22 45.5

3 95 2,388 3,307 5,695 (275) 69 7 24 43.3

4 98 2,677 3,315 5,992 (572) 86 0 13 59.6
11-11

11.4.2 Comparison of Senior-Only, Low-Income, and Multi-Family Households to the 

General Population

Table 11.4.4 Non-Weatherized Gas Furnaces: Comparison of Average LCC Savings for 

Consumer Subgroups and All Households

Efficiency 

Level

AFUE Average LCC Savings 

2009$

Median Payback Period 

years

Senior LowIncomeMultiFamilyAll Senior LowIncomeMultiFamilyAll

National

1 90 177 163 (45) 87 13.1 13.0 24.6 15.8 

2 92 245 228 (22) 136 9.9 9.5 17.0 11.9 

3 95 349 334 7 205 9.9 9.9 15.1 11.7 

4 98 222 191 (230) 46 17.5 17.9 28.6 20.1 

North

1 90 201 175 63 155 8.4 9.4 13.9 10.1 

2 92 273 242 104 215 6.6 7.2 9.8 7.7 

3 95 410 367 176 323 8.3 8.5 11.3 9.4 

4 98 307 229 (26) 198 14.8 16.5 23.2 17.1 

South

1 90 139 143 (226) (13) 21.0 19.6 50.5 24.1 

2 92 200 206 (232) 19 18.8 17.1 45.5 21.3 

3 95 252 276 (275) 28 18.2 16.4 43.3 20.5 

4 98 89 125 (572) (181) 26.3 22.6 59.6 28.9 
11-12

11.4.3 Replacement and New Construction Subgroup Results

Table 11.4.5 Non-Weatherized Gas Furnaces: LCC and PBP Results for Replacement

Efficiency 

Level

AFUE Life-Cycle Cost Life-Cycle Cost Savings Median 

Payback 

Period 

years

Average 

Installed 

Cost 

2009$

Average 

Discounted 

Operating 

Cost 

2009$

Average 

LCC 

2009$

Average 

Savings 

2009$

% of Households with

Net

Cost

No 

Impact

Net 

Benefit

National

Baseline 80 1,590 9,441 11,031 N/A 0 100 0 N/A

1 90 2,357 8,522 10,879 (11) 31 52 17 21.1 

2 92 2,417 8,358 10,774 39 32 42 27 15.3 

3 95 2,556 8,125 10,681 111 41 17 42 13.0 

4 98 2,802 8,017 10,819 (26) 67 0 32 20.7 

North

Baseline 80 1,713 11,464 13,177 N/A 0 100 0 N/A

1 90 2,483 10,328 12,811 90 13 72 16 12.9 

2 92 2,543 10,126 12,669 151 13 57 30 9.0 

3 95 2,687 9,838 12,524 262 25 23 52 9.7 

4 98 2,925 9,704 12,629 158 60 1 39 16.9 

South

Baseline 80 1,411 6,474 7,884 N/A 0 100 0 N/A

1 90 2,173 5,872 8,045 (160) 59 23 18 31.8 

2 92 2,231 5,765 7,996 (125) 59 19 22 27.9 

3 95 2,365 5,612 7,977 (110) 65 8 27 25.5 

4 98 2,623 5,542 8,164 (297) 77 0 22 32.2
11-13

Table 11.4.6 Non-Weatherized Gas Furnaces: LCC and PBP Results for New Construction

Efficiency 

Level

AFUE Life-Cycle Cost Life-Cycle Cost Savings Median 

Payback 

Period 

years

Average 

Installed 

Cost 

2009$

Average 

Discounted 

Operating 

Cost 

2009$

Average 

LCC 

2009$

Average 

Savings 

2009$

% of Households with

Net

Cost

No 

Impact

Net 

Benefit

National

Baseline 80 2,374 9,885 12,259 N/A 0 100 0 N/A

1 90 2,355 8,922 11,277 383 7 53 40 0.0 

2 92 2,425 8,751 11,176 429 9 42 49 3.7 

3 95 2,589 8,508 11,097 487 21 17 62 8.4 

4 98 2,913 8,408 11,320 264 55 1 44 18.2 

North

Baseline 80 2,452 11,815 14,268 N/A 0 100 0 N/A

1 90 2,447 10,647 13,094 343 2 70 27 2.5 

2 92 2,516 10,440 12,956 404 4 55 41 5.1 

3 95 2,680 10,145 12,825 502 16 23 61 8.8 

4 98 2,996 10,017 13,012 315 55 1 44 17.9 

South

Baseline 80 2,252 6,857 9,109 N/A 0 100 0 N/A

1 90 2,211 6,216 8,428 445 14 27 59 0.0 

2 92 2,283 6,103 8,386 469 16 23 61 0.3 

3 95 2,447 5,942 8,388 463 28 8 63 7.1 

4 98 2,782 5,885 8,667 184 56 0 43 18.9 
11-14

Table 11.4.7 Non-Weatherized Gas Furnaces: Comparison of Average LCC Savings for 

Consumer Subgroups (New and Replacement Markets) and All Households

Efficiency 

Level

AFUE Average Savings 

2009$

Median Payback Period 

years

Retrofit New All Retrofit New All

National

1 90 (11) 383 87 21.1 0.0 15.8 

2 92 39 429 136 15.3 3.7 11.9 

3 95 111 487 205 13.0 8.4 11.7 

4 98 (26) 264 46 20.7 18.2 20.1 

North

1 90 90 343 155 12.9 2.5 10.1 

2 92 151 404 215 9.0 5.1 7.7 

3 95 262 502 323 9.7 8.8 9.4 

4 98 158 315 198 16.9 17.9 17.1 

South

1 90 (160) 445 (13) 31.8 0.0 24.1 

2 92 (125) 469 19 27.9 0.3 21.3 

3 95 (110) 463 28 25.5 7.1 20.5 

4 98 (297) 184 (181) 32.2 18.9 28.9 
11-15

REFERENCES

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

Consumption Survey: 2005 Public Use Data Files. 2005. (Last accessed April 22, 2011.) 

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