12-i 

CHAPTER 12. LIFE-CYCLE COST SUB-GROUP ANALYSIS

TABLE OF CONTENTS

12.1 INTRODUCTION ............................................................................................................ 12-1

12.2 SUB-GROUPS DESCRIPTION ....................................................................................... 12-1

12.2.1 Low-Income Consumers .................................................................................... 12-1

12.2.2 Institutions of Religious Worship ...................................................................... 12-2

12.2.3 Institutions that Serve Low-Income Populations ............................................... 12-2

12.3 LCC SUB-GROUP RESULTS ......................................................................................... 12-3

REFERENCES ........................................................................................................................ 12-13

 

LIST OF TABLES

Table 12.2.1 U.S. Census Bureau 2005 Definition of Low-Income Households ...................... 12-2

Table 12.3.1 Product Class 1 – Instant Start (IS) and Rapid Start (RS) Ballasts That 

Operate Two 4-Foot Medium Bipin (MBP) Lamps (Commercial, T12 

Baseline): LCC and PBP Sub-Group Results .................................................... 12-4

Table 12.3.2 Product Class 1 - IS and RS Ballasts That Operate Two 4-Foot MBP Lamps 

(Commercial, T8 Baseline): LCC and PBP Sub-Group Results ....................... 12-5

Table 12.3.3 Product Class 1 - IS and RS Ballasts That Operate Two 4-Foot MBP Lamps 

(Residential, T12 Baseline): LCC and PBP Sub-Group Results ....................... 12-6

Table 12.3.4 Product Class 1 - IS and RS Ballasts That Operate Two 4-Foot MBP Lamps 

(Residential, T8 Baseline): LCC and PBP Sub-Group Results ......................... 12-6

Table 12.3.5 Product Class 1 - IS and RS Ballasts That Operate Four 4-Foot MBP 

Lamps: LCC and PBP Results: LCC and PBP Sub-Group Results ................... 12-7

Table 12.3.6 Product Class 1 - IS and RS Ballasts That Operate Two 8-Foot Slimline 

Lamps (T12 Baseline): LCC and PBP Sub-Group Results ............................... 12-8

Table 12.3.7 Product Class 1 - IS and RS Ballasts That Operate Two 8-Foot Slimline 

Lamps (T8 Baseline): LCC and PBP Sub-Group Results ................................. 12-9

Table 12.3.8 Product Class 2 – Programmed Start (PS) Ballasts That Operate Two 4-Foot 

MBP Lamps: LCC and PBP Sub-Group Results ............................................. 12-10

Table 12.3.9 Product Class 2 - PS Ballasts That Operate Four 4-Foot MBP Lamps: LCC 

and PBP Sub-Group Results ............................................................................ 12-11

Table 12.3.10 Product Class 2 - PS Ballasts That Operate Two 4-Foot Miniature Bipin 

(MiniBP) Standard Output (SO) Lamps: LCC and PBP Sub-Group Results .. 12-12
12-1 

CHAPTER 12. LIFE-CYCLE COST SUB-GROUP ANALYSIS

12.1 INTRODUCTION

The life-cycle cost (LCC) sub-group analysis evaluates impacts of standards on 

identifiable groups, such as different consumer populations or business types that may be 

disproportionately affected by any national energy conservation standard level. For the notice of 

proposed rulemaking (NOPR), the U.S Department of Energy (DOE) analyzed the LCCs and 

payback periods (PBPs) for consumers that fall into such groups. The analysis determined

whether any particular group of consumers would be adversely affected by any of the trial 

standard levels (TSLs). 

DOE determined the impact on consumer sub-groups using the LCC spreadsheet model. 

Chapter 8 of the NOPR technical support document explains in detail the inputs to the model 

used in determining LCC impacts and PBPs. 

This chapter describes the sub-group identification in further detail and gives the results of 

the LCC and PBP analyses for the considered sub-groups.

12.2 SUB-GROUPS DESCRIPTION

Using the LCC spreadsheet model, DOE determined the impact of the TSLs on the 

following consumer sub-groups: low-income consumers, institutions of religious worship, and 

institutions that serve low-income populations. Representative ballast designs used in the 

industrial sector (e.g., ballasts operating high output lamps) are not typically used by the 

identified sub-groups, and were not included in the sub-group analysis. 

12.2.1 Low-Income Consumers

To reflect conditions faced by low-income consumers, DOE adjusted electricity prices to 

represent rates paid by consumers living below the “poverty line.” DOE defines low-income 

consumers using data from the U.S. Census Bureau,1 as has been done in the Fluorescent and 

Incandescent Lamps Rule.2 As defined in the Energy Information Administration’s 2005 

Residential Energy Consumption Survey (RECS),3

 the poverty line varies with household size, 

head of household age, and family income. Table 12.2.1 summarizes the income level baselines 

for selecting low-income households from the RECS sample. DOE also assumed that lowincome consumers use residential ballasts only, and did not include commercial ballast designs 

in the LCC analysis for this sub-group. 
12-2 

Table 12.2.1 U.S. Census Bureau 2005 Definition of Low-Income Households

Household Size Owner Age Weighted-Average Threshold

1 65 and over $9,367

1 64 and under $10,160

2 65 and over $11,815

2 64 and under $13,145

3 Any $15,577

4 Any $19,971

5 Any $23,613

6 Any $26,683

7 Any $30,249

8 Any $33,610

9 or more Any $40,288

DOE discovered that residential low-income consumers faced electricity prices that were higher 

by 0.02 cents per kWh (in 2005 dollars) than the prices faced by consumers above the poverty 

line in 2005. In the sub-groups analysis, DOE multiplied the national average residential 

electricity price of $0.1222 by 1.002 to arrive at the low-income residential electricity price of 

$0.1224. Because of the large diversity of low-income families in the residential sector, DOE 

does not expect to see differences in other inputs like operating hours, lamp types, or event 

response behaviors that vary significantly on average from the residential sector as a whole. 

Therefore, with the exception of electricity prices, DOE used the same inputs in the low-income 

consumer sub-group analysis as it used for the general residential sector population.

12.2.2 Institutions of Religious Worship

DOE found that institutions of religious worship operate for fewer hours per year than 

any other building type in the commercial sector according to the U.S. Lighting Market 

Characterization: Volume I4 and 2003 Commercial Buildings Energy Consumption Survey5 For 

institutions of religious worship, DOE assumed that this sub-group has lower annual operating 

hours than the commercial sector average used in the main LCC analysis. Specifically, DOE 

used 2,239 instead of the national average of 3,886 operating hours for the sub-group analysis. 

DOE also assumed that institutions of religious worship use commercial ballasts only, and did 

not include residential ballast designs in the LCC analysis for this sub-group. In general, because 

of the large diversity of institutions of religious worship in the commercial sector, DOE does not 

expect to see differences in other inputs like electricity prices or sales tax that vary significantly 

on average from the commercial sector as a whole. Therefore, with the exception of operating 

hours, DOE used the same inputs in the institutions of religious worship sub-group analysis as it 

used for the general commercial sector population. 

12.2.3 Institutions that Serve Low-Income Populations

In the Fluorescent and Incandescent Lamps Rule, DOE performed research on institutions 

that serve low-income populations and found a wide variety of non-profit, for-profit, and 

governmental organizations.1 Because of the large diversity of organizations in this sector, DOE 

does not expect to see operating hours, lamp types, or event response behaviors that vary 

significantly on average from the commercial sector as a whole. DOE, however, expects that the 

majority of organizations serving low-income populations are small non-profit groups. For this 
12-3 

reason, DOE chose a sub-group scenario with a discount rate that is 3.8 percent higher than the 

average discount rate for the commercial sector (for a discount rate of 10.7 percent versus 6.9 

percent). Complete details for calculating discount rates are given in chapter 8. DOE assumed 

that these institutions use commercial ballasts only, and did not include residential ballast 

designs in the LCC analysis for this sub-group. 

12.3 LCC SUB-GROUP RESULTS

Table 12.3.1 through Table 12.3.10 show the LCC impacts and PBPs for identified subgroups that purchase ballasts. Negative PBP values indicate standards that reduce operating costs 

and installed costs. Entries of “N/A” indicate standard levels that do not reduce operating costs. 

In general, the average LCC savings for the identified sub-groups at the considered efficiency 

levels are not significantly different from the average for all consumers. LCC results that were 

positive in the primary analysis remained positive for each sub-group; the same occurred for 

negative primary LCC results.
12-4 

Table 12.3.1 Product Class 1 – Instant Start (IS) and Rapid Start (RS) Ballasts That 

Operate Two 4-Foot Medium Bipin (MBP) Lamps (Commercial, T12 Baseline): LCC and 

PBP Sub-Group Results

Trial 

Standard 

Level

Efficiency 

Level

Life-Cycle Cost

2009$

Life-Cycle Cost Savings Median

Payback Period*

years Installed 

Cost

Discounted 

Operating 

Cost

LCC Average 

Savings 

2009$

Percent of 

Consumers that 

Experience

Net

Cost

Net 

Benefit

Sub-Group: Institutions of Religious Worship

Event I: Replacement

Baseline 64.63 185.70 250.33

1 1 55.91 178.85 234.76 15.57 0.0 100.0 -15.61

2 2 58.58 170.82 229.40 20.93 0.0 100.0 -5.00

3 3 59.16 156.54 215.71 34.62 0.0 100.0 -2.35

Event II: New Construction / Renovation

Baseline 67.02 185.70 252.72

1 1 58.30 158.28 216.58 36.14 0.0 100.0 -3.98

2 2 60.97 151.32 212.29 40.43 0.0 100.0 -2.21

3 3 61.55 148.39 209.95 42.77 0.0 100.0 -1.84

Sub-Group: Institutions Serving Low-Income Populations

Event I: Replacement

Baseline 64.63 198.59 263.22

1 1 55.91 191.11 247.02 16.20 0.0 100.0 -8.99

2 2 58.58 182.54 241.12 22.10 0.0 100.0 -2.88

3 3 59.16 167.32 226.48 36.74 0.0 100.0 -1.35

Event II: New Construction / Renovation

Baseline 67.02 198.59 265.61

1 1 58.30 169.17 227.47 38.14 0.0 100.0 -2.29

2 2 60.97 161.75 222.71 42.90 0.0 100.0 -1.27

3 3 61.55 158.63 220.18 45.43 0.0 100.0 -1.06

* Negative PBP values indicate standards that reduce operating costs and installed costs.
12-5 

Table 12.3.2 Product Class 1 - IS and RS Ballasts That Operate Two 4-Foot MBP Lamps 

(Commercial, T8 Baseline): LCC and PBP Sub-Group Results

Trial 

Standard 

Level

Efficiency 

Level

Life-Cycle Cost

2009$

Life-Cycle Cost Savings Median

Payback Period

years Installed 

Cost

Discounted 

Operating 

Cost

LCC Average 

Savings 

2009$

Percent of 

Consumers that 

Experience

Net

Cost

Net 

Benefit

Sub-Group: Institutions of Religious Worship

Event I: Replacement

1 Baseline / 1 55.08 178.85 233.93

2 2 57.74 170.82 228.56 5.37 0.1 99.9 4.23

3 3 58.33 156.54 214.87 19.06 0.0 100.0 1.86

Event II: New Construction / Renovation

1 Baseline / 1 57.47 178.85 236.32

2 2 60.13 170.89 231.02 5.29 0.1 99.9 4.27

3 3 60.72 167.54 228.26 8.06 0.0 100.0 3.66

Sub-Group: Institutions Serving Low-Income Populations

Event I: Replacement

1 Baseline / 1 55.08 191.11 246.19

2 2 57.74 182.54 240.29 5.90 0.0 100.0 2.43

3 3 58.33 167.32 225.64 20.54 0.0 100.0 1.07

Event II: New Construction / Renovation

1 Baseline / 1 57.47 191.11 248.58

2 2 60.13 182.62 242.75 5.82 0.0 100.0 2.46

3 3 60.72 179.05 239.77 8.81 0.0 100.0 2.11
12-6 

Table 12.3.3 Product Class 1 - IS and RS Ballasts That Operate Two 4-Foot MBP Lamps 

(Residential, T12 Baseline): LCC and PBP Sub-Group Results

Trial 

Standard 

Level

Efficiency 

Level

Life-Cycle Cost

2009$

Life-Cycle Cost Savings Median

Payback Period*

years Installed 

Cost

Discounted 

Operating 

Cost

LCC Average 

Savings 

2009$

Percent of 

Consumers that 

Experience

Net

Cost

Net 

Benefit

Sub-Group: Low-Income Consumers

Event I: Replacement

Baseline 52.99 67.85 120.84

1 1 45.02 56.51 101.53 19.31 0.0 100.0 -7.60

2, 3 3 46.24 57.41 103.64 17.20 0.0 100.0 -6.99

Event II: New Construction / Renovation

Baseline 55.38 67.85 123.23

1 1 47.41 56.10 103.51 19.72 0.0 100.0 -7.43

2, 3 3 48.63 53.64 102.27 20.96 0.0 100.0 -5.14

* Negative PBP values indicate standards that reduce operating costs and installed costs.

Table 12.3.4 Product Class 1 - IS and RS Ballasts That Operate Two 4-Foot MBP Lamps 

(Residential, T8 Baseline): LCC and PBP Sub-Group Results

Trial 

Standard 

Level

Efficiency 

Level

Life-Cycle Cost

2009$

Life-Cycle Cost Savings Median

Payback Period*

years Installed 

Cost

Discounted 

Operating 

Cost

LCC Average 

Savings 

2009$

Percent of 

Consumers that 

Experience

Net

Cost

Net 

Benefit

Sub-Group: Low-Income Consumers

Event I: Replacement

1 Baseline/1 44.11 56.51 100.62

2, 3 3 45.33 57.41 102.74 -2.12 100.0 0.0 N/A

Event II: New Construction / Renovation

1 Baseline/1 46.50 56.51 103.01

2, 3 3 47.72 54.03 101.75 1.26 10.6 89.4 5.37

* Entries of “N/A” indicate standard levels that do not reduce operating costs.
12-7 

Table 12.3.5 Product Class 1 - IS and RS Ballasts That Operate Four 4-Foot MBP Lamps: 

LCC and PBP Results: LCC and PBP Sub-Group Results

Trial 

Standard 

Level

Efficiency 

Level

Life-Cycle Cost

2009$

Life-Cycle Cost Savings Median

Payback Period

years Installed 

Cost

Discounted 

Operating 

Cost

LCC Average 

Savings 

2009$

Percent of 

Consumers that 

Experience

Net

Cost

Net 

Benefit

Sub-Group: Institutions of Religious Worship

Event I: Replacement

1, 2 Baseline / 2 76.77 323.00 399.77

3 3 79.33 315.65 394.98 4.78 0.3 99.7 4.45

Event II: New Construction / Renovation

1, 2 Baseline / 2 79.16 323.00 402.16

3 3 81.72 318.63 400.35 1.81 13.7 86.3 7.48

Sub-Group: Institutions Serving Low-Income Populations

Event I: Replacement

1, 2 Baseline / 2 76.77 345.04 421.81

3 3 79.33 337.21 416.54 5.27 0.0 100.0 2.56

Event II: New Construction / Renovation

1, 2 Baseline / 2 79.16 345.04 424.20

3 3 81.72 340.38 422.10 2.10 6.7 93.3 4.31
12-8 

Table 12.3.6 Product Class 1 - IS and RS Ballasts That Operate Two 8-Foot Slimline

Lamps (T12 Baseline): LCC and PBP Sub-Group Results

Trial 

Standard 

Level

Efficiency 

Level

Life-Cycle Cost

2009$

Life-Cycle Cost Savings Median

Payback Period*

years Installed 

Cost

Discounted 

Operating 

Cost

LCC Average 

Savings 

2009$

Percent of 

Consumers that 

Experience

Net

Cost

Net 

Benefit

Sub-Group: Institutions of Religious Worship

Event I: Replacement

1 Baseline / 1 90.06 343.91 433.97

2 2 89.34 327.51 416.86 17.12 0.0 100.0 -0.55

3 3 89.68 317.44 407.12 26.85 0.0 100.0 -0.18

Event II: New Construction / Renovation

1 Baseline / 1 92.45 343.91 436.36

2 2 91.73 333.01 424.74 11.68 0.0 100.0 -0.81

3 3 92.07 328.05 420.11 16.25 0.0 100.0 -0.30

Sub-Group: Institutions Serving Low-Income Populations

Event I: Replacement

1 Baseline / 1 90.06 367.73 457.79

2 2 89.34 350.13 439.48 18.31 0.0 100.0 -0.31

3 3 89.68 339.39 429.07 28.72 0.0 100.0 -0.10

Event II: New Construction / Renovation

1 Baseline / 1 92.45 367.73 460.18

2 2 91.73 355.99 447.72 12.45 0.0 100.0 -0.47

3 3 92.07 350.70 442.77 17.41 0.0 100.0 -0.17

* Negative PBP values indicate standards that reduce operating costs and installed costs.
12-9 

Table 12.3.7 Product Class 1 - IS and RS Ballasts That Operate Two 8-Foot Slimline

Lamps (T8 Baseline): LCC and PBP Sub-Group Results

Trial 

Standard 

Level

Efficiency 

Level

Life-Cycle Cost

2009$

Life-Cycle Cost Savings Median

Payback Period

years Installed 

Cost

Discounted 

Operating 

Cost

LCC Average 

Savings 

2009$

Percent of 

Consumers that 

Experience

Net

Cost

Net 

Benefit

Sub-Group: Institutions of Religious Worship

Event I: Replacement

1, 2 Baseline / 2 90.03 327.51 417.55

3 3 90.03 317.44 407.81 9.74 0.0 100.0 0.42

Event II: New Construction / Renovation

1, 2 Baseline / 2 92.42 327.51 419.93

3 3 92.75 322.64 415.40 4.54 0.0 100.0 0.88

Sub-Group: Institutions Serving Low-Income Populations

Event I: Replacement

1, 2 Baseline / 2 90.03 350.13 440.16

3 3 90.37 339.39 429.76 10.41 0.0 100.0 0.24

Event II: New Construction / Renovation

1, 2 Baseline / 2 92.42 350.13 442.55

3 3 92.75 344.94 437.69 4.86 0.0 100.0 0.50
12-10

Table 12.3.8 Product Class 2 – Programmed Start (PS) Ballasts That Operate Two 4-Foot 

MBP Lamps: LCC and PBP Sub-Group Results

Trial 

Standard 

Level

Efficiency 

Level

Life-Cycle Cost

2009$

Life-Cycle Cost Savings Median

Payback Period

years Installed 

Cost

Discounted 

Operating 

Cost

LCC Average 

Savings 

2009$

Percent of 

Consumers that 

Experience

Net

Cost

Net 

Benefit

Sub-Group: Institutions of Religious Worship

Event I: Replacement

Baseline 57.92 147.32 205.24

1, 2 2 59.17 137.56 196.73 8.51 0.0 100.0 1.85

3 3 59.60 135.76 195.35 9.89 0.0 100.0 2.11

Event II: New Construction / Renovation

Baseline 60.31 147.32 207.63

1, 2 2 61.55 137.50 199.05 8.58 0.0 100.0 1.84

3 3 61.99 135.91 197.90 9.73 0.0 100.0 2.14

Sub-Group: Institutions Serving Low-Income Populations

Event I: Replacement

Baseline 57.92 161.44 219.37

1, 2 2 59.17 150.78 209.94 9.42 0.0 100.0 1.07

3 3 59.60 148.80 208.40 10.97 0.0 100.0 1.22

Event II: New Construction / Renovation

Baseline 60.31 161.44 221.76

1, 2 2 61.55 150.71 212.26 9.49 0.0 100.0 1.06

3 3 61.99 148.97 210.96 10.79 0.0 100.0 1.23
12-11

Table 12.3.9 Product Class 2 - PS Ballasts That Operate Four 4-Foot MBP Lamps: LCC 

and PBP Sub-Group Results

Trial 

Standard 

Level

Efficiency 

Level

Life-Cycle Cost

2009$

Life-Cycle Cost Savings Median

Payback Period

years Installed 

Cost

Discounted 

Operating 

Cost

LCC Average 

Savings 

2009$

Percent of 

Consumers that 

Experience

Net

Cost

Net 

Benefit

Sub-Group: Institutions of Religious Worship

Event I: Replacement

Baseline 75.31 271.57 346.88

1 1 79.20 268.67 347.87 -0.99 94.4 5.6 19.57

2, 3 3 81.28 261.72 343.01 3.88 22.4 77.6 8.84

Event II: New Construction / Renovation

Baseline 77.70 271.57 349.27

1 1 81.59 248.00 329.60 19.67 0.0 100.0 2.41

2, 3 3 83.67 242.23 325.91 23.36 0.0 100.0 2.97

Sub-Group: Institutions Serving Low-Income Populations

Event I: Replacement

Baseline 75.31 297.48 372.80

1 1 79.20 294.31 373.52 -0.72 89.3 10.7 11.27

2, 3 3 81.28 286.72 368.00 4.79 11.2 88.8 5.09

Event II: New Construction / Renovation

Baseline 77.70 297.48 375.18

1 1 81.59 271.72 353.31 21.87 0.0 100.0 1.39

2, 3 3 83.67 265.41 349.08 26.10 0.0 100.0 1.71
12-12

Table 12.3.10 Product Class 2 - PS Ballasts That Operate Two 4-Foot Miniature Bipin 

Standard Output Lamps: LCC and PBP Sub-Group Results

Trial 

Standard 

Level

Efficiency 

Level

Life-Cycle Cost

2009$

Life-Cycle Cost Savings Median

Payback Period

years Installed 

Cost

Discounted 

Operating 

Cost

LCC Average 

Savings 

2009$

Percent of 

Consumers that 

Experience

Net

Cost

Net 

Benefit

Sub-Group: Institutions of Religious Worship

Event I: Replacement

Baseline 63.45 199.70 263.15

1 1 63.55 188.59 252.15 11.01 0.0 100.0 0.11

2 2 65.04 180.53 245.58 17.57 0.0 100.0 1.06

3 3 69.84 193.18 263.02 0.13 72.9 27.1 12.49

Event II: New Construction / Renovation

Baseline 65.84 199.70 265.54

1 1 65.94 188.59 254.53 11.01 0.0 100.0 0.11

2 2 67.43 186.89 254.33 11.21 0.0 100.0 1.58

3 3 72.23 182.14 254.37 11.17 0.5 99.5 4.64

Sub-Group: Institutions Serving Low-Income Populations

Event I: Replacement

Baseline 63.45 213.44 276.90

1 1 63.55 201.60 265.15 11.75 0.0 100.0 0.06

2 2 65.04 193.00 258.05 18.85 0.0 100.0 0.61

3 3 69.84 206.49 276.33 0.57 67.0 33.0 7.19

Event II: New Construction / Renovation

Baseline 65.84 213.44 279.29

1 1 65.94 201.60 267.54 11.75 0.0 100.0 0.06

2 2 67.43 199.79 267.22 12.07 0.0 100.0 0.91

3 3 72.23 194.72 266.94 12.34 0.0 100.0 2.67
12-13

REFERENCES

1. U.S. Census Bureau. Poverty Thresholds 2005. 2006. (Last accessed February 27, 2010.) 

<www.census.gov/hhes/www/poverty/threshld/thresh05.html> 

2. U.S. Department of Energy–Office of Energy Efficiency and Renewable Energy. Energy 

Conservation Program for Consumer Products: Technical Support Document: Energy 

Efficiency Program for Consumer Products: Energy Conservation Standards for Fluorescent 

and Incandescent Lamps: Chapter 12. 2009. Washington, D.C. 

<http://www1.eere.energy.gov/buildings/appliance_standards/residential/pdfs/ch_12_lamps_

standards_final_tsd.pdf> 

3. U.S. Department of Energy–Energy Information Administration. Residential Energy 

Consumption Survey: File 1: Housing Unit Characteristics. 2005. (Last accessed February 

27, 2011.) <www.eia.doe.gov/emeu/recs/recspubuse05/pubuse05.html> 

4. U.S. Department of Energy–Office of Energy Efficiency and Renewable Energy. Energy 

Conservation Program for Consumer Products: Final Report: U.S. Lighting Market 

Characterization, Volume I: National Lighting Inventory and Energy Consumption Estimate. 

2002. Washington, D.C. 

<www.eere.energy.gov/buildings/info/documents/pdfs/lmc_vol1_final.pdf> 

5. U.S. Department of Energy–Energy Information Administration. Commercial Building 

Energy Consumption Survey: Micro-level data, file 2 Building Activities, Special Measures 

of Size, and Multi-building Facilities. 2003. (Last accessed February 27, 2011.) 

<www.eia.doe.gov/emeu/cbecs/public_use.html>