Life-Cycle Cost Analysis of Energy Efficiency Design Options for Residential Furnaces and Boilers

In 2001, the U.S. Department of Energy (DOE) initiated a rulemaking process to consider whether to amend the existing energy efficiency standards for furnaces and boilers. A key factor in DOE's consideration of new standards is the economic impacts on consumers of possible revisions to energy-efficiency standards. Determining cost-effectiveness requires an appropriate comparison of the additional first cost of energy efficiency design options with the savings in operating costs. DOE's preferred approach involves comparing the total life-cycle cost (LCC) of owning and operating a more efficient appliance with the LCC for a baseline design. This study describes the method used to conduct the LCC analysis and presents the estimated change in LCC associated with more energy-efficient equipment. The results indicate that efficiency improvement relative to the baseline design can reduce the LCC in each of the product classes considered.