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Life Cycle Cost Analysis (LCCA)
When evaluating a new HVAC system, it is important to understand which options optimize savings and efficiency. By performing a life cycle cost analysis, a property owner can explore the initial and long-term costs associated with each system, allowing them to make the best product decision for their wallet and the environment. Let’s explore some important key performance indicators to monitor when performing an HVAC life cycle cost analysis.
Energy Cost Savings
A Life Cycle Cost Analysis is often utilized to explore the difference between initial costs and long-term costs to identify the best savings option. With this information, a decision can be made based on the projected investment in each product over its lifetime, choosing the option that will provide optimum savings overall.
Without this analysis, property owners could choose an HVAC system that will be too expensive to maintain or more expensive than necessary to achieve the same energy savings and efficiency. This analysis gives a property owner guidance to make the best energy cost savings decision for their company.
Return on Investment (ROI)
When purchasing an energy-efficient HVAC system, you can save a substantial amount of money on your energy costs, allowing you to recoup your investment faster through savings. However, the most expensive energy-efficient system may not produce an optimal result for each building. By taking into account the opportunity for return on investment, owners can choose a system that will make their money back rather than draining it over the lifetime.
Environmental Impact
Today, it has become essential to monitor energy usage as sustainability initiatives have become a focus. A life cycle cost analysis will measure energy efficiency through each system’s energy usage over time. This provides insight into the most cost-effective and environmentally friendly options. With the information provided, property owners can make complex decisions that will benefit them both in the short term and the long term.
Net Energy Optimizer Simplifies LCCA
With Net Energy Optimizer (NEO), property owners can easily perform an HVAC life cycle cost analysis to identify energy and money-saving opportunities. NEO enables you to compare up to three HVAC systems on the same building model side-by-side while holding other elements of the building constant. This allows you to save money and time on designs, optimize product selection and decision-making, and showcase a specific HVAC product with customized system characteristics. With one software, owners can model as many buildings as they want. The more models you build, the more you save.
To learn more about how Net Energy Optimizer can help you save on costs and energy, connect with our team today.
