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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