Lifecycle Cost Analysis Tool Calculates Energy Costs

Adiabatic coolers

Energy efficiency specialist, Danfoss, lifts lid on true costs of running a convenience store refrigeration system

Retail Times, September 30, 2014

While important, the initial purchase price of new equipment is only a part of the story, the company claims. Often what appears to be the cheapest option is actually very far from it. When making a decision to replace or upgrade refrigeration equipment it is important to remember that a system’s lifetime running costs are often several times greater than its initial purchase cost, said Danfoss.

Lifecycle cost analysis supports the selection of energy efficient products that meet the needs of today whilst managing their operating costs tomorrow. To illustrate this, Danfoss has developed a number of lifecycle software tools that compare the energy usage of various units and uncover the true costs of ownership.

By combining anticipated usage rate, energy cost per kWh and a few key points of data known to the equipment manufacturer, it is possible to produce an estimate that breaks down the costs within a product’s life cycle.

Lifecycle calculation frequently shows that over a given period, refrigeration equipment running costs can be more than five times greater than the initial equipment purchase price, reports Danfoss. Incredible though it may seem, running costs are very often overlooked in favour of a short term saving offered by a cheaper unit that is much more energy hungry, the company said. Like-for-like comparisons often reveal stark differences in the energy consumption and actual running costs.

Read More