8 A

- i APPENDIX 8A. USER INSTRUCTION S FOR LIFE

- CYCLE COST AND

PAYBACK PERIOD SPREADSHEETS

TABLE OF CO NTENTS

8A.1 DEFINITIONS

................................ ................................ ................................ ........ 8A

- 1

8A.2 BASIC INSTRUCTIONS

................................ ................................ ....................... 8A

- 38A

- 1 APPENDIX 8A. USER INSTRUCTION S FOR LIFE

- CYCLE COST AND PAYBA CK

PERIOD SPREADSHEETS

8A.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 ) analysis for residential dishwashers by using Microsoft Excel spread sheet s available on DOE’s website at http://www1.eere.energy.gov/buildings/appliance_standards/residential/dishwashers.html

. 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 www.decisioneering.com

.

The latest version of the workbook, whic h is post ed on the DOE website, was tested using Microsoft Excel 200 7 . The LCC and PBP workbook for residential dishwashers comprises the following workshe ets.

Statistics Presents a statistical summary of the simulation runs performed: the range in LCC sa vings 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 worksheet provides minimum, maximum, and a verage 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

standard

- sized and compact dish 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 . The 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 (2014 is de fault); and the number of simulation runs to be performed within a range of 100

– 50,000 (10,000 is default).

LCC & Payback Lists the input values used to calculate LCC and PBP. Many values were derived from data from sampled RECS households.

Parameters in clude fuel type for water heating; annual numbers of loads; product lifetime; the discount rate applied to costs and savings; energy and water prices; the base

- case efficiency distribution; product price and total installed cost; and energy and8A

- 2 water use. The result is annual and cumulative cash flow for both

standard

- sized and compact dishwashers operating at each efficiency level.

RECS Samples Presents the data from the 2480 RECS households DOE sampled

for dishwashers. 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) equipment prices; (3) energy and water prices; and (4) discount rate (whether new or replacement unit).

Energy & Water Use Contain s per

- cycle energy and water use data at each efficiency level broken down into machine energy use; hot water use; standby power; and water heating energy use (electric, gas, or oil). 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 dish washers in 2010$

. 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 Prices Contains the regional prices in 2010$ for electricity, gas, oil, and

water used in the LCC and PBP anal ysis.

Energy Price Trend s Displays the trends in energy prices for electricity, gas, and oil for

2008

– 204 6 under the reference, high, and low economic growth

scenarios from AEO 2010.

Water Price Trend Contains the trend for water prices for 2008

– 2040 ba sed on the consumer price index (CPI) 197 5

– 200 7.

Discount Rate Present s data used to develop average real discount rates 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 8E describes development of

discount rates in detail.

Forecast Cells Gives details regarding base

- case efficiency distributions for both

classes of dishwashers. Median, minimum, maximum, and average values are given, alo ng with 5 th , 25 th , 50 th , 75 th , and 95 th percentile values. Included are product prices and details of the LCC and PBP (LCC savings in terms of money, energy, and water and the8A

- 3 percentages of households that would experience a net cost, no impact, or net sa vings from each efficiency level).

Lifetime Present s the average lifetime

, in years , for standard

- sized and compact dish washers ( 15.4 ), the Weibull parameters used for the survival function, and a graph of the Weibull retirement function

for residentia l dishwashers

.

8A.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 for the three inputs listed under "User Input" (energy price trend, 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 parameter s, click the “Run” button. The spreadsheet will minimize until the simulation is complete, and will then re

- open with the updated

results.