8A-i APPENDIX 8A. USER INSTRUCTION S FOR LIFE-CYCLE COST AND

PAYBACK PERIOD ANAL YSIS SPREADSHEET

TABLE OF CONTENTS

8A.1 USER INSTRUCTIONS ........................................................................................ 8A-18A-1 APPENDIX 8A. USER INSTRUCTIONS FO R LI FE-CYCLE COST AND PAYBACK

PREIOD ANALYSIS SPREADSHEET

8A.1 USER I NSTRUCTIONS

The results obtained in the life-cycle cost (LCC) and payback period (PB P) analysis can be examined and reproduced using the Micros oft Excel spreadsheet available on the U.S. Department of Energy (DOE)’s website at: http://www1.eere.energy.gov/buildings/appliance_st andards/commercial/small_electric_motors.html

.

The spreadsheet is called “LCC_SmallMotor.x ls ” and it enables the user to perform a life-cycle cost and payback peri od analysis of small electric motor standards for three product classes: polyphase, capacitor-start induction -run (CSIR), and capacitor-start capacitor-run (CSCR) motors. The minimum requirements to r un the spreadsheet are Microsoft Excel 2000 or a later, with Crystal Ball (a commercially available add-in program) installed

The LCC spreadsheet performs calculations to estim ate the LCC savings and PBP due to an energy efficiency standard. The LCC spread sheet, or workbook, consists of the following

worksheets:

Summary This worksh eet summarizes the results of the LCC analysis and provides a means of changing the user and simulation options. User options provide a method of reviewing LCC results by candidate standard level (C SL) for each product class. Simulation options are used to set the electricity price trend, simulation start year, and the numbe r of trials for a Monte Carlo

simulation.

Definitions This worksheet contains va lues used to populate the spreadsheet’s for m elements.

Simulation Results This worksh eet summarizes the mean LCC and PBP values from the distribution results produced by the simulation. This is a reporting step—values are not automatically updated. The results presented by the Department on th is sheet were calculated using the default input values for elect ricity price trend and simulation

start year.

LCC & Payback The spreads heet reports the results of the calculation for the “Average” scenario on the Summary worksheet. The “Average” scenario allows users to produ ce provisional answers without performing a Monte Carlo simu lation. The Summary worksheet of the LCC spreadsheet shows the results from this worksheet.8A-2 Energy Use This worksh eet calculates the annual electricity use of each product class.

Equipment Price This worksh eet calculates the retail equipment price and total installed cost inputs for each product class. Inputs are derived

from the baseline and incremental manufacturer costs of the engineering spreadsheet.

Ownership and Applications This worksh eet calculates the i nput data regarding ownership, applications, hours of operation, and motor loading for each product class.

Energy Price This worksh eet calculates retail electricity price distribution input data for residential, i ndustrial and commercial sectors.

Energy Price Trend This worksheet contains the price trends of electri city; this trend represents the growth rate of electricity prices relative to the price in 2005. DOE took price da ta and forecasts from the DOE Energy Information Administration (EIA)'s Annual Energy Outlook 2008 for the period until 2030. To estimate the trend after 2030, DOE followed past guide lines provided to the Federal Energy Management Program by EIA and used the average rate of change during 2020–2030 for electricity prices

Discount Rate This worksheet contains the disc ount rate inputs that are used to

estim ate the cost of new equipment purchases.

Lifetime This worksh eet contains the distri butions of the age (in years) for each product class at which equipment is retired from service.

Forecast Cells This worksh eet contains the list of output vari ables that are produced by the model.

Basic instructions for operating the LCC spreadsheet are as follows:

After downloading the LCC spreadsheet file from DOE's website, open the file using Excel. For the LCC spreadsheet to function properly Excel’s Macro Secu rity Level must be set to Medium or Low; security settings can be cha nged on the Security Level tab in the Security dialog box (Tools menu, Macro su bmenu). Click on the tab for the Summary worksheet. This worksheet provides selectors to view LCC and PBP results for sp ecific CSLs compared to the baseline for all product classes.

The Summary worksheet also allows th e user to run Monte Carlo sim ulations. Simulations can be configured by changing the se lectors for future electricity price trend, the simulation start year, and the number of calculati on iterations the simulation will produce as its distribution of results. To run a simulation, cl ick the “Run Simulation” button (you must re-run8A-3 after changing the parameters). The progress of the sim ulation can be monitored by watching the

count of iterations at the left bottom corner. Results are summarized on the Simulation Results

worksheet.