Life Cycle Costing
Capital cost Renewing and maintenance cost
Energy cost
15.6.2015
.
Basis
The life cycle costing is carried out during 25 year period by using net present value. The following issues have been taken into account in the calculations:
The investment cost covering the design and construction costs collected from suppliers and
literature Capital cost (= investment cost + renewing cost – residual value) Service and maintenance cost Heating energy cost based on the average month tariffs and the average basic fees (Vantaan
Energia Ltd. 3/2015) Electrical energy cost (based on the prices of Vantaan Energia Ltd. 6/2014)
Results have been presented from owner’s and users point of view (micro economic calculation).
This study is based on three different types of buildings: • a new apartment building with passive structures • a new detached house with passive structures • an existing apartment building, built in the 1960s.
Results –new apartment building
Results show that only maximal utlization of solar energy is worth LCC comparison in connection to heat pump systems. And for example LED lightning system is in all cases a way to economical lowering of E value.
160
170
180
190
200
210
220
230
240
250
60 65 70 75 80 85 90 95 100 105 110
€/m
²
E-value, kWh/m²,y
LCC as present value
95.7 90.7 84.1 74.6 67.8
GH
AWHP
DH
NO SOLAR SYSTEMS
ST(78m²) ST(78m²)+ PV(66m²)
ST(78m²)+ PV(200m²)
ST(78m²)+ PV(200m²) + LED
DH = district heating AW = air-to-water GH = ground source heat
0
50
100
150
200
250
GH/Sol E75 GH E96 AWHP E103 DH E108
LCC,
€/m
2
Life cycle cost of energy systems in new apartment building
Electricity
Heating
Maintenance
Capital
GH = ground source heat, AW = air-to-water, DH = district heating, Sol = solar energy
0
50
100
150
200
250
300
Basic Capital +30 % Capital - 30 % Energy + 4%/a Calculation period -5a
LCC
€/m
2
LCC - sensitivity in new apartment building
GH/SOL E75
GH E95
AWHP E103
DH E108
HP = heat pump, GH = ground source heat, AW = air-to-water, DH = district heating, Sol = solar energy
The order of alternatives does not chanbge in any sensitivity factors. The importance of changes in energy costs clearly bigger than capital costs.
Example of target setting
When utilizing results of this study in choice of heating system it is worth to check out quality of planning and installation to confirm all targets of great importance.
GH = ground heat,, DH = district heating, Sol = solar energy
New Apartment buildingUnit DH GH GH/SOL Planning Construction Use
Life Cycle Economy Investment cost €/m² 27 25 60 Annual life cycle cost €/m²/y 8,8 7,5 7,6 ROI %/v 100 4,8 Pay Back Time years 0 9
Inner circumstancies Inner climate class Class S2 S2 S2
Energy efficiency Energy class Class C B A E kWh/m²,a 108 96 75 Share of renewable energy % 0 29 43 Heating energy kWh/m²,a 91 33 26 Electrical energy kWh/m²,a 110 110 86
Checking points
0
50
100
150
200
250
300
GH/Sol E53 GH E78 AWHP E87 EAHP E121 AAHP E127
LCC
€/m
2
Life cycle costs of energy systems in new detached house as present value (corresponding E -values downside of columns)
Electricity
Heating
Maintenance
Capital
Results –new detached house
GH = ground source heat, AW = air-to-water, DH = district heating, EA = exhaust air, Sol = solar energy
150
170
190
210
230
250
270
290
310
330
350
0 20 40 60 80 100 120 140
LCC
€/m
2
E value kWh/m2,a
Life cycle costs of different heat pump systems with effects on E values in detached house
Both ground and air water heat pump solutions make it possible to achieve lower total energy consumption (E value) than 90 kWh/m²,a, which means energy class A. Then ground heating and air water heat pump are most life cycle economical choices.
17/06/2015 9
New detached house – all alternatives LCC
216 228
197
281
216
283 270
277
150
170
190
210
230
250
270
290
LCC
€/m
2
The savings of Ground source heat (GH) and Ai water heating (AWHP) in house with 150 m² are over 10 000 € compared to air-air water pumps or exhaust-air heat pumps.
0
50
100
150
200
250
300
350
400
Basic Capital +30 % Capital - 30% Energy + 4 %/a Calculation period -5 a
LCC
€/m
2 LCC sensitivity in new detached house
GH/SOL E53
GH E78
AWHP E87
EAHP E121
AAHP E127
The order of alternatives does not chanbge in any sensitivity factors. The importance of changes in energy costs clearly bigger than capital costs.
GH = ground source heat AW = air-to-water EA = Exhaust –air AA = air-air
17/06/2015 11
Results 1960’s Apartment Building
0
50
100
150
200
250
300
350
400
GH/Sol E111 GH E131 AWHP E139 EAHP E140 DH E162
LCC
€/m
²
Life cycle costs of energy systems in 1960’s apartment building as present value (corresponding E -values downside of columns)
Capital Maintenance Heating Elecricity
GH = ground source heat AW = air-to-water EA = Exhaust–air DH = district heating
303
320
358
266
387
310 324
377
150
200
250
300
350
400
450
GH/S E111 AWHP/S E114 EAHP/S E E119 GH E131 DH/S E136 AWHP E139 EAHP E140 DH E162
LCC
€/m
2 1960’s apartment building– all alternatives LCC
The savings of ground source heat (GH) are about100 €/m2 compared to district heating (DH) and 50 €/m2 compared to air-air or Exhaust-air heat pumps. Only ground heating with solar panels make it possible to achieve energy class c in Finland. So usually nZEB target means also need for LED lightning system , improvement of insulation and change of windows and/or installation of mechanical ventilation in old buildings.
GH = ground source heat AW = air-to-water EA = Exhaust–air DH = district heating
GH = ground source heat AW = air-to-water EA = Exhaust–air DH = district heating
0
100
200
300
400
500
600
700
Basic Capital +30 % Capital-30% Energy + 4 %/a Calculation period -5 a
LCC
€/m
2 LCC aensitivity in 1960s apartment building
(corresponding E –values downside of columns)
GH/SOL E111
GH E131
AWHP E139
EAHP E140
DH E162
Conclusions The ground heat pump is the best choice in all three different types of buildings: a new detached house, a new apartment building and an existing apartment building, built in the 1960s. Even after sensitivity analyses the ground heat pump is the most profitable solution, when taking all life cycle costs into account. The economic efficiency of the ground heat pump is even better in two cases: when energy costs rise and/or the ground heat pump’s investment costs decrease at the same time when the investment costs of district heating stay the same. Innovative and integrated concept development is still welcome for welfare of people and to prevent climate change.
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