LIFE CYCLE COS

PAYBACK PERIO

1. Turiel, B. Atkinson, S. Brown, A. Denver,

D. Fisher, S. Hakim, and J. McMahon

Technology Assessment and Marketing Group

Energy Analysis Program

Lawrence Berkeley National Laboratory

Fluorescent Lamp Ballasts Workshop

March 18, 1997

EE-RM-97-500 COMMENT 0CC

LIFE CYCLE COST 

PAYBACK PERIODS 

I. Turiel, B. Atkinson, S. Brown, A. Denver, 

D. Fisher, S. Hakim, and J. McMahon 

Technology Assessment and Marketing Group 

Energy Analysis Program 

Lawrence Berkeley National Laboratory 

Fluorescent Lamp Ballasts Workshop 

March 18, 1997 

1 
Objectives of Analysis.'

BERKELEY LAE

#1 Perform LCC & Payback Period Analysis for 12

lamp/ballast combinations using average

parameter values

Lamp Types

F40T12/RE

F40T12/ES

F32T8

F96T12

F96T1 2/ES

F96T12HO

F96T12HO/ES

Ballast Types

Energy Efficient Magnetic (EEM)

Cathode Cut-out (CC)

Electronic Rapid Start (ERS)

Electronic Instant Start (EIS)

EE-RM-97-500 COMMENT 0CC

-..... 

Objectives of Analysis 

#1 Perform LCC & Payback Period Analysis for 12 

lamplballast combinations using average 

parameter values 

lamp Types 

'F40T12/RE 

F40T12/ES 

F32T8 

F96T12 

F96T12/ES 

F96T12HO 

, F96T12HO/ES 

Ballast Types lamps/Ballast 

Energy Efficient Magnetic (EEM)} 1 and 2 Cathode Cut-out (CC) 

Electronic Rapid Start (ERS)} 

Electronic Instant Start (EIS) 

1, 2, 3, ~nd 4 ' ' 

~~ 2 
Electricity Cost (1995$/k h).

Commercial

Industrial

Ballast Prices

,BERKELEY,-LAB;

EE-RM-97-500 COMMENT 0CC

-""IiChanges in Key 

. Parameter 

Ballast Lifetime (hrs) 

Lamp Life (hrs): with CC Ballast 

Electricity Cost (1995$/kWh): 

C'ommercial 

Industrial· 

Ballast ·Prices 

~ ... 

aram ter 

Previous 

33,000 

same as 

EEM 

alu s 

Present 

45,000 -, 

reduced by 

150/0 . 

0.075' 0.075 

0.05 0.0.48 

8ft CC=$72 8ft CC=$4'9 

3 
Average Annual Lamp Operating Hours

Ballast Sector Old New

F 6T12 F96T1 2/E Comm 4170

Ind 4080 4000

F 6T12HO & 2HO/ES Comm 4470

Ind 5050

All Others Comm 4230 3600

BERKELEY LAB

EE-RM-97-500 COMMENT 0CC

Average Annual Lamp Operating Hours 

Ballast Sector Old New' 

F96T12 & F96T12/ES Comm 4170 3600 

Ind 4080 4000 

F96T12HO & F96T12HO/ES Comm 4470 4000 

Ind 5050 5000 

All Others Comm 4230 3600 

' .... 

f~_ 4 
ctive s

#2 Sensitivity Analysis for 4 Major Parameters

• Electricity Price

Ballast Price

Ballast Lifetime

Operating Hours

'6,ERKELEY

EE-RM-97-500 COMMENT 0CC

. 

. Objectives of Analysis (nt'd) 

. . . 

#2 Sensitivity Analysis for 4 Major Parameters . 

• Electricity Price 

.. • Ballast Price 

• Ballast Lifetime 

.. • Operating Hours 

5 
fife-Cycle Cost Sensitivity Analysis

( 1 995$, 8% Discount Rate)

Commercial Sector

2 F40T12/ES.

EEM

CC

ERS

2 F96T12/ES

EEM

EIS

Operating Hours

low avg high

147 203 421

145 197 403

146 198 402

Ballast Life(hrs) Ballast Price($)

low avg high S1 av S2

169 203 233 204 203 202

172 197 226 198 197 196

168 198 224 193 198 199

305 359 408 359 359 358

302 349 393 343 349 351

Electricity ric (io/k

love v i

163 203 263

161 197 252

163 198 250

288 359 464

287 349 442

EE-RM-97-500 COMMENT 0CC

Life-Cycle Cost Sensitivity Analysis 

(1995$,8% Discount Rate) 

Operating Hours 

low avg high 

Ballast life(hrs) 

low avg high 

Ballast Price($) Electricity Price( C!:/kWh) 

Ballast System S1 avg S2 low avg high 

Commercial Sector 2500 3600 ,BOOO 33000 45000 60000 5.5 7.5 10.5 

2 F40T121ES 

EEM 147 203 421 169 203 233 204 203 202 163 203 263 

CC 145 197 403 172 197 226 198 197 196 161 197 252 ' 

ERS 146 198 402 168 198 224 193 198 199 163 198 250 

2F96T121ES 

EEM 261 359 739 305 359 408 359 359 358 288 359 ' 464 

EIS ' 257 349 708 302 349 393 343 349 351 287 349 442 

,~ 

~ 6 
rence iii.

(Electi rerN a EEM)

asts

r_verage

Delta(price) _ $28.94 - $1 2.44 = $16. 50

Sensitivity 1

Delta(price) = 0. 85($28.94) - 1 . 06($ 1 2.44) _ $1 1 .40

Sensitivity 2

Delta(price) = 1O5($28' 94 - 0.95($12.44) _ $18.57

New LRI Survey

Delta(price) = $22.40 - $11.50 = $10.90

B,ERKEL$ . p:!

EE-RM-97-500 COMMENT 0CC

I 

Price Difference £ r 2· 40T 12 Ballasts 

(Electronic ~ EEM) 

, • ,Average 

Delta(price) = $28.94 -. $12.44 = $16.50 

• Sensitivity 1 

'Delta(price) =' 0.85{$28.94) - 1006($12.44) = $11.40 

• Sensitivity 2 _ 

D,elta(price) = 1005($28'.94- 0.95($12.44) = $18'057 

• New LRI Survey 

Delta(price) = $22.40 .. $11.50 = $10.90 

7 
Frequency of Mi* nimu

for F40T12 Lamps

EE-RM-97-500 COMMENT 0CC

Frequency of MinimumLCC . 

for F 40T 12 Lamps 

>. 

() 

25 -

20 -

c 15-

Q) .:::1 

CT 10- Q) 

'-

LL 

5-

0.-.-

EEM cc 

Ballast 

24 

ERS 

8 
HERKELEYLAB

• Average Value R u ts

Sensitivity Res

Ranges from 2.7 to 9.5 years for E

9

EE-RM-97-500 COMMENT 0CC

Summary ofPa back esults 

(F40. 12). 

• Average Value Results for Payback Period 

. - Ranges from 5.9.10 6.6 years for ERS ballasts 

• Payback Period,Sensitivity Results 

- Ranges fr~m 2.7 to 9.5 years for ERS ballasts· 

9 
Frequency of Minimum LCC

(F96T12 & F96T 12/HO)

BERKELEY`.. LAB

1 0

EE-RM-97-500 COMMENT 0CC

-..... 

~~ 

Frequency of Minimum LCC 

(F96T12 & F96T12/HO) 

18 18 

18 -

16 -

14 - >.. 

o 12 

~ 10-

::::l. . 

c- 8-

~ 6-

u.. 4 

2 - 0 0 

o----~--~~~~ 

EEM CC ERS 

Ballast 

EIS 

10 
Uinnary of Payback

(F96T12 & F96T121H0)

Average Value ResuI c for i ayback

Ranges from,2.17 to 3 . 3 E

'

l. Tz, ballasts

Payback Period Sensitivity Results

- Ranges from 1.0 to 6.6 years for ERS ballasts

'HEHKEL£Y,'L' Bj

11

EE-RM-97-500 COMMENT 0CC

' ..... 

. SUmmary of Payback Results . 

(F96T12 & F96T12/HO) 

• Average Value Results for Payback Period 

.- Ranges from 2.7 to 3.3 years for ERS ballasts 

• Payback Period Sensitivity Results 

. - Ranges from 1 .. 0 to'6. 6 years for ERS ballasts 

~- 11 
Objectives of Analysis (cont'd)

#3 Develop method for calculating payba c%ll,^

period that will account for unequal lamp

lifetimes with different ballasts

- F40T 12 lamp with an Energy-Efficient

Magnetic Ballast

• lamp lifetime = 'I 9,000 hours

- F40T12lamp with a Cathode Cutout Ballast

• lamp lifetime = 16 , 150 hours

12

BERKELEY LAS

EE-RM-97-500 COMMENT 0CC

Objectives of Analysis (cont'd) , 

, , 

#3 Develop method for calculating payback 

,~ 

E~A 

,period that will account for unequal lamp 

lifetimes with different ballasts 

- F40T12 lamp with an Energy-Efficient 

Magnetic Ballast 

41 lamp lifetime = 19,000 hours 

- 'F 40T 12 lamp with a Cathode Cutout Ballast 

41 lamp lifetime = 16,150 hours 

12 
Because CC ballasts reduce Tr) I I, fe

compared to the baseline EE--(, b)

H,E! 71 Q E L E Y,:, L fAf B.

payback period is difficult to calr - ate

13

EE-RM-97-500 COMMENT 0CC

Payback Period £ r CC allasts 

; -

Problem: 

. Because CC ballasts reduce lamp life . . 

. compared to the baseline EEM ballast, 

payback period is difficult to calculate 

- .' 

13 

/ 
Payback Period for CC Ballasts

• If the incremental operating cost is constant,

the payback equation is

Payback =

-Delta(purchase price

Delta(operating cost)

• If incremental operating cost is not constant,

there is no single, well-defined equation for

payback

14

EE-RM-97-500 COMMENT 0CC

Payback Period for CC Ballasts 

• If the incremental operating cost is constant, 

the payback equation is 

Payback = 

-. Delta(purchase price) 

Delta( operating cost) 

• If incremental operating cost is not constant, 

there is ,no single, well-defined equation for 

payback 

14 
20

.15

-10

-15

Delta Elect

Delta Lamp

Delta Ballast

Cumulative Delta ()

. Example 1: Cumulative Cash Flow Differences Assuming Lamp

Replacements at.Sa e i e .for 2F'4 12/

1 5

EE-RM-97-500 COMMENT 0CC

' .... 

. Payback Calculation, C B l1asts· 

20 ~--------------------------------------~ 

. 15 

c:l Delta Elect 

.f;*:;:::::~1 Delta Lamp 

1ai! Delta Ballast 

10 ~~~~~~~~~~~~~~~~CumulativeDeHa 

en· '-·5 

Cd 

--

8 0 

-5+-~--~-~~~------"'~----~~~~-\I 

';'10 

-15 L...-___ _____ """"__ ________ __=i...__I 

Year 

~~-

. Example 1: Cumulative Cash Flow Differences Assuming Lamp 

Replacements at.Same Time for 2F40T12/ES 

15 
Payback Calcul ation, CC allasts

Diff o

I nitial Purchase Installation Expense $35.55 $41.97

Annual Electricity Expense ($/yr) $19.55 17.1

Lamp Replacement Cost (in years 5.3 & 10.6) $14.78 $14.78

Payback Period (yrs)

Example 1: For 2F40T 12/ES, Assuming Lamps R eplaced at Same Time

Ifrrrrrr]

1 6

EE-RM-97-500 COMMENT 0CC

Payback Calculation, CC Ballasts 

Difference 

EEM 

Initial Purchase & Installation Expense $35.55 

Annual Electricity Expense ($/yr) $19.55 

Lamp Replacement Cost (in years 5.3 & 10.6) $14.78 

Payback Period (yrs) 

CC 

$41.97 

$17.81 

$14.78 

{CC .. EEM} 

. $6.42 

$-1.74 

$0.00 

3.7 

Example 1: For 2F40T12/ES, Assuming Lamps Replaced at Same Time 

' .... 

~~- 16 
6 RKELEY ^L`;,as. 1.41

Example 2: Cumulative Cash Flow Differences Assuming Lamp

Replacements at Different Times for 1/

17

EE-RM-97-500 COMMENT 0CC

Payback Calculation, CC allasts 

20 ~--------------------------------------~ 

15+----------------

U) 

ltI.-

«S 

. (gr-0 ________________ __ 

-15 

c:J Delta Elect 

i""""'?":iJ Delta Lamp 

~ Delta Ballast 

~ Cumulative Delta 

-20 11..--______ ------__ -------------0 

Year 

Example 2: Cumulative Cash Flow Differences Assuming Lamp 

Replacements at Different Times for 2F40T12/ES 

17 
Payback for CC Ballasts

Annual Lamp Cost Approach

• Calculate annual lamp replacement cost

For EEM,

annual lamp cost = $14.78/5.3yrs = $2.79/yr

For CC,

annual lamp cost = $14,78/4.5yrs = $3.28/yr

• Include lamp costs in operating costs

Delta(operating costs) = ($19.55+$2.79) -

($17.81+$3:28) _ $1.25/yr

Payback period = $6.42/($1.25/yr) = 5.1 yrs

1 8

B ERKELEYELAB

EE-RM-97-500 COMMENT 0CC

-""", 

Payback for CC Ballasts 

Annual Lamp Cost Approach 

• Calculate annual lamp replacement co·st 

-, ForEEM, 

annual lamp cost = $14.78/5.3yrs = $2.79/yr 

.-' For CC, 

. annual lamp cost = $14.78/4.5yrs = $3.28/yr 

• Include lamp costs in operating costs 

Delta(operating costs) = ($19.55+$2.79) -

($17.81 +$3~28) == $1.25/yr 

Payback period = $6.42/($1.25/yr) = 5.1 yrs 

.!~- 18 
Operating 1 rs Ballast Pri ( ) [ 1

Ballast e low. av high v lo - 9 i

' Commercial Sector 2500 3600, 8000 5.5 7.5 10.5

EEM

1

7.3 5.1 2.3 5.4 5.1 4.8 7.0 5.1 3.6

ERS .5 5.9 2.7 4.1 5.9 6.6 8.0

2

EEIM

1 /

EIS 7. 5.41 2.4 3.6 5.4 ^ 6.2 7,4 o

;BERKELEY LAB

1 9

EE-RM-97-500 COMMENT 0CC

ayback Sensitivity Analysis ( rs) 

Operating Hours B.allast Price($) Electricity Price( e/kWh) 

Ballast System low. avg. high S1 avg S2 low avg high 

Commercial Sector 2500 3600· 8000 5 .. 5 7.5 10,,5 

·2 F40T121ES 

EEM 

CC 7.3 5.1 2.3 . 5.4 5.1 4.8 7.0 5.1 3.6 

ERS 8.5 5.9 2.7 4.1 5.9 6.6 8.0 5.9 .4.2 

. 2 F96T121ES 

EEM 

EIS 7.8 5.4 2.4 3.6 5.4 .6.2 7.4 5.4 3;9 

-~ 

!.~ 19 
Supplemental Infonma

EE-RM-97-500 COMMENT 0CC

Supplemental Information 

20 
Discounted Cumulative Cash Flow

Differences for F4OT 12/ES

(Lamp Replacements at Different Times)

Delta Ballast

Delta Lamp

Delta Elect

X....... Cumulative Delta ($)

21

BERKELEY LAS

EE-RM-97-500 COMMENT 0CC

-.... 

f~_ 

Discounted Cumulative Cash Flow 

Differences for F40T12/ES 

(Lamp Replacements at Different Times) 

15......-----............... ---------, 

10-+-------~ 

5 

U) 

Im 

= 0 

·0 0 C 

-5 

III Delta Ballast 

____ ---I t:~t~M DeltaLamp 

1:1 Delta Elect 

H------f:::::::;:~:1---1 ···K····· Cumulative Delta ($) 

-10-1---------1:::::1---------1 

-15-'-----------------' 

Year 

·21 
CC (using Average Jalues)

C Sensitivity Results

• Payback -Period (using Average Values)

•

0 Payback Period Sensitivity Results

Form^.lalatioinn of New Payback P: iiod for CC

EE-RM-97-500 COMMENT 0CC

....... 

Analyses rfonned 

All Lamp Technologies 

. 

- .·LCC (using Average Values) 

-LCC Sensitiyity Results 

• Payback Period (using Average Values) 

- . Payback Period Sensitivity Results· 

• . Formulation of New Payback Period for CC 

.. Ballasts 

~~ ... .22 
ary of LCC Results

(F40T12)

Minimum LCC (using Average Values)

energy-efficient magnetic options are never the

minimum LCC

cathode cutout ballasts when used with 2F40T1 2

or 2F40T 12/ES lamp

• electronic ballasts when used with 1 F40T 12 or

1F40T12/ES lamp

23

BERKELEY LAB

EE-RM-97-500 COMMENT 0CC

Summary of LCC Results 

(F40T12) 

Minimum LCC (using Average Values) 

~ energy~efficient magnetic options are never the 

minimumLCC 

• cathode cutout ballasts when used with 2F40T12 

. or 2F40TI2/ES lamp 

• electronic ballasts when used with IF40T12 or 

IF 40T I2/ES lamp 

23 
Averg7-- L ValI

electronic . ballasts are always the ME"MIM'Um

24 ;BkRKELEY. "'

EE-RM-97-500 COMMENT 0CC

. . 

Summary of C Results 

(F96T12'& F96T12/HO) 

·Minimum·LCC (using·Average Values) 

. electronic ballasts are always the minimum LCC - . 

-"'I> 

~~- 24 
ary of LCC Results

(F32T8)

Minimum LCC (using Average Values)

• energy efficient magnetic ballasts are the. minimum

LCC for 1-lamp F32T8

• electronic ballasts are the minimum LCC for 2-, 3-,

or 4- lamp F32T8

25

BERKELEY LAB

EE-RM-97-500 COMMENT 0CC

. . 

Summary of LCC Results 

(F32T8) 

Minimum LCC (using Average Values) 

-energy efficient magnetic ballasts are the minimum 

Lee for 1-lamp F32T8 

.. 

-electronic ballasts are the minimum Lee for 2~, 3 ... , 

or 4- lamp F32T8 

25 
uency

for '3 2T8 Lamps

OEM

13 El7kELEY L}CE 26

EE-RM-97-500 COMMENT 0CC

• Frequency of Minimum 

for F32T8 Lamps 

~ .. 

25 -

20 -

>. 

o 

c 15-

CD 

:J 

g 10 

lIi.... 

LL . 5 -'. 

0-

23 

5 

1 

EEM CC ERS EIS 

Ballast 

26 
ary of Payback Results

(F32T8)

• Average Value Results for Payback Period

- Ranges from 5.1 to 7.7 years for ERS ballasts

• Payback Period Sensitivity Results

Ranges from 2.3 to 11.1 years for ERS ballasts

27

BERKELEY LAB

EE-RM-97-500 COMMENT 0CC

Summary of Payback Results 

(F32T8) 

- Average Value Results for Payback Period· 

- Ranges from 5.1 . to 7.7 years for ERS ballasts 

-Payback Period Sensitivity Results 

-. Ranges from 2.3 ·to 11.1 years for ERS ballasts 

27 
1

stab fi `il $35-55 $41.97 $6.42

^^ !r Eactricky I: (/yr) $1 9.55 $1 7.81 $-1.74

Replacement Cost (in years 4e

Lamp Replacement Cost (in years 5.3 10.6) $14-78 $0.00 $-14.78

Payback Period (yrs)

,B,EEtKELEY .LAB'.

28

EE-RM-97-500 COMMENT 0CC

. Payback alculation : . 

Payback· Period (yrs) . . 

. 5.1 

28 
Electronic Ballast Shipments by Lamb

4ft T8 4ft T12 8ft T12 8ft T1 O

ape

29

EE-RM-97-500 COMMENT 0CC

Electronic Ballast Shipments by Lamp Type 

100-w------------------. 

90 

'. 80 

U) 

-

5i 70 

.~ 60 

.c 

. U) 50 

-

o . 

1: 40 

~ 30 -

CD 

Q. 20 

10 

o 

4ftT8 4ft T12 8ft T12 8ft T12HO 

1993 

1995 

29