10/15/2012

# Calculating the Value of Hidden Benefits of Energy Conservation

Research Shows Predictable, Quantifiable Impact

By Eric Woodroof, Ph.D., CEM, CRM

Example #1: Reduced Maintenance Material Costs

Assume you turn off a lighting system 25% of the time. If lights are used 25% less, the lighting ballasts (and lamps) should last about 25% longer. Let’s calculate the impact on the ballast material first:

A ballast life is rated for 60,000 hours of operation.  If your building operates the lights 5,000 hours per year, they would need to replace the ballasts at the year twelve. If there are 5,000 ballasts – each costing about \$20 in material – then at the twelfth year, the material replacement cost would be:

= (\$20/ballast)(5,000 ballasts)

= \$100,000

Annualized ballast material replacement cost would be:

= (\$100,000)(1/12 years)

= \$8,333/year

If the lights are only on for 3,750 hours per year (a 25% reduction), the ballasts should last 16 years.  This would reduce the annualized ballast material replacement cost to:

= (\$100,000)(1/16 years)

= \$6,250/year

Thus, the Annualized Material Savings for ballasts are:

= \$8,333/year - \$6,250/year

= \$2,083/year in ballasts

We can use similar calculations to quantify the reduced maintenance material costs for the lamps:

If there are 10,000 lamps, each costing \$2.50 (includes shipping and taxes), and they last 20,000 hours.  If lamps are on 5,000 hours per year, then after 4 years they would need to be replaced and this would cost:

= (\$2.5/lamp)(10,000 lamps)

= \$25,000

The annualized lamp material replacement cost would be:

= (\$25,000)(1/4 years)

= \$6,250/year

Again, if the lights are only “on” 3,750 hours per year (a 25% reduction), the lamps should last 5.3 years. This would reduce the annualized lamp material replacement cost to:

= (\$25,000)(1/5.3 years)

= \$4,717/year

Thus, the Annualized Material Savings for lamps are:

= \$6,250/year - \$4,717/year

= \$1,533/year in lamps

Therefore the total annual avoided maintenance material costs (lamps and ballasts) are \$2,083 plus \$1,533, or \$3,616.

This same approach could be used to calculate maintenance material savings values for other ECMs that extend the lives of motors, filters, etc.

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Lower costs. Increase operational efficiency. Detect problems before they're problems. Johnson Controls is reinventing building efficiency.

Lower costs. Increase operational efficiency. Detect problems before they're problems. Johnson Controls is reinventing building efficiency.

Lower costs. Increase operational efficiency. Detect problems before they're problems. Johnson Controls is reinventing building efficiency.

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.

### Need portable cooling?

Rent or buy spot coolers from full-service locations nationwide. On call “24/7”. Primary, supplemental or emergency cooling. Atlas Sales & Rentals, Inc., or call (800) 972-6600.

Sloan Performance Also Comes in White

Mitsubishi Electric Cooling & Heating is transforming HVAC with advanced Variable Refrigerant Flow (VRF) zoning solutions that totally redefine efficiency. VRF zoning systems offer lower lifecycle costs, less maintenance, better performance and reliability which lead to increased overall building efficiency. And all at a price that fits within your budget. Let Mitsubishi Electric help you redefine your HVAC efficiency as well as what you can achieve in your buildings.

Lower costs. Increase operational efficiency. Detect problems before they're problems. Johnson Controls is reinventing building efficiency.

Lower costs. Increase operational efficiency. Detect problems before they're problems. Johnson Controls is reinventing building efficiency.

Lower costs. Increase operational efficiency. Detect problems before they're problems. Johnson Controls is reinventing building efficiency.

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.

### Need portable cooling?

Rent or buy spot coolers from full-service locations nationwide. On call “24/7”. Primary, supplemental or emergency cooling. Atlas Sales & Rentals, Inc., or call (800) 972-6600.

Sloan Performance Also Comes in White

Mitsubishi Electric Cooling & Heating is transforming HVAC with advanced Variable Refrigerant Flow (VRF) zoning solutions that totally redefine efficiency. VRF zoning systems offer lower lifecycle costs, less maintenance, better performance and reliability which lead to increased overall building efficiency. And all at a price that fits within your budget. Let Mitsubishi Electric help you redefine your HVAC efficiency as well as what you can achieve in your buildings.