8 A

- i APPENDIX 8

- A. USER INSTRUCTION S FOR LIFE

- CYCLE COST AND PAYBACK PERIOD SPREADSHEETS

TABLE OF CO NTENTS

8

- A.1 DEFINITIONS

................................ ................................ ................................ .. 8

- A

- 1 8

- A.2 BASIC INSTRUCTIONS

................................ ................................ .................. 8

- A

- 38

- A

- 1 APPENDIX 8

- A. USER INSTRUCTION S FOR LIFE

- CYCLE COST AND PAYBA CK
PERIOD SPREADSHEETS

8

- A.1 DEFINITIONS

The interested reader can examine and reproduce detailed results of the U.S. Department of Energy’s ( DOE’s ) life

- cycle cost ( LCC ) and payback period ( PBP ) analysi s for residential clothes washers by using Microsoft Excel sp readsheet s available on DOE ’s website at

To fully execute the spreadsheet s requires both Microsoft Excel and Crysta l Ball software. Both applications are comme rcially available. Crystal Ball is available at http://www1.eere.energy.gov/buildings/appliance_standards/residential/clothes_washers.html

. www.decisioneering.com

.

The latest version of the workbook

, which is post ed on the DOE website

, was tested using Microsoft Excel 200 7

. The LCC and PBP workbook for residential clothes washers comprises the following workshe ets.

Statistics Presents a statistical summary o f the simulation runs performed: the range in LCC savings and PBPs ; retail purchase price ; total installed cost ; total operating costs over the product lifetime (discounted ); annual electricity, gas, and oil use ; annual water use ; and household characteristics. The work sheet provides minimum, maxim um, and average values, along with 5 th , 25 th , 50 th , 75 th , and 95 th percentile values.

Summary Presents the results of an analysis in terms of a verage LCC

, LCC

s avings , and median

, average , and undefined PBP for both front

and top

- loading washers. A table includes, for each efficiency level considered

, i nstalled p rice ; life time o perating c ost ; LCC ; average savings ; and the percentage of households that w ould incur a net cost, no impact, or net savings from each standard level

. T he user

can stipulate three parameters for a simulation run: whether the AEO energy price trend reflects an economic case that is reference, low

- growth, or high

- growth (reference is default); the year

, from 2014

– 2018, at which to begin the calculation of LCC and PBP (201 5 is default); and the number of simulation runs to be performed within a range of 100

– 50,000 (10,000 is default).

LCC & Payback L ists the input value s used to calculat e LC C and PBP. Many values were derived from data from sampled RECS households. Pa rameters include fuel type for water heating and clothes drying ; annual numbers of washer and dryer loads; product lifetime ; the discount rate applied to costs and savings; energy and water prices; the base

- case efficiency distribution; product price and t otal installed cost; and energy and water use

. The result is annual and8

- A

- 2 cumulative cash flow for both front

- and top

- loading clothes washers operating at each efficiency level.

RECS Samples Presents the data from the 299 RECS households DOE sampled for front

- loading machine s and the 3, 311 sampled for top

- loading model s. Identifies the parameters exported to (1) the LCC and PBP analysis (water heating and dryer fuel and price , numbers of washer and dryer loads per year ) ; (2) product prices ; (3) energy and water prices ; and (4) discount rate ( whether new or replacement unit).

Energy & Water Use Contains per

- cycle energy and water use data at each efficiency level broken down into washer machine energy use, dryer energy use (gas or electric) ; water heating energy use (electric, gas, or oil) ; and both total and hot water use. Identifies the parameters exported to the LCC and PBP analysis.

Base

- Case Efficiency Gives the market shares for efficiency levels in the base case. Distribution

Equipment Prices Develops total installed cost for clothes washers in 20 1 0$

. Gives baseline and incremental manufacturer costs, retail price, sales ta x, and installation cost for both product classes and each efficiency level. Includes the assumptions used about mark

- ups and sales tax.

Energy & Water Price s Contains the regional prices in 20 1 0$ for electricity, gas, oil, and
water u sed in the LCC and PBP analysis.

Energy Price Tren d s Display s the trends in energy prices for electricity, gas, and distillate for 2008

– 2045 under the reference, high, and low economic growth scenarios from AEO 2010.

Water Price Trend Contains the trend for water prices for 20 11

– 2045 based on the consumer price index (CPI) 19 81

– 2010

Discount Rate Present s data used to develop average real discount rate s and a distribution of discount rates for various types of household debt and equity used to purchase products installed in new homes and replacement products. Appendix 8D describes de velopment of discount rates in detail

.

Forecast Cells Gives details regarding base

- case efficiency distributions for both classes of clothes washers. Median, minimum, maximum, and average values are given, along with 5 th , 25 th , 50 th , 75 th , and 95 th percentile values. Included are product prices and details of the8

- A

- 3 LCC and PBP ( LCC sav ings in terms of money, energy, and water and the percentages of hou seholds that would experience a net cost, no impact, or net savings from each efficiency level )

.

Li fetime Present s the average lifetime

, in years

, for front

- and top

- loading clothes washers (1 4

. 2 ), the Weibull parameters used for the survival function , and a graph of the Weibull retirement function for residential clothes washers

.

8

- A.2 BASIC INSTRUCTIONS

Basic instructions fo r operating the LCC spreadsheet are provided below.

1. After download ing the LCC file from DOE’s w eb site

, use Microsoft Excel to open it . At the bottom of the workbook , click on the tab for the sheet labeled Summary

.

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

3. U s e the graphical interface in the spreadsheet to choose parameters or enter data. You can change the default choices f or the three inputs listed under "User Input " ( energy price tr end , start year, and number of simulation runs)

. To change a default input

, select the desired value from the drop

- down choice s by the input box.

4. After selecting the desired parameters, click the “Run” button. The spreadsheet will minimize until the simulation is complete, and will then re

- open with the updated results.