Save Money with a High Efficiency Heating System!

Posted by HTP on Jul 22, 2015 10:00:00 AM

Calculate Your Return on Investment with these tips from ACEE! Calculate how much money you will save by switching to a high efficiency heating system

AFUE of New System
AFUE of existing System
 
80%
85%
90%
95%
50%
$38 $41 $44 $47
55%
$31 $35 $39 $42
60%
$25 $29 $33 $37
65%
$19 $24 $28 $32
70%
$13 $18 $22 $26
75%
$6 $12 $17 $21
80%
  $6 $11 $16
85%
    $6 $11

 

If you have an idea of how much it will cost to install a new system, use the chart below to calculate how much money you are likely to save each year with a more efficient system, and what your return on investment is likely to be. Remember, when fuel prices go up, your savings will go up.

1. Calculate Dollar Savings per $100 of Annual Fuel Cost

To determine savings from the table to the right, find the horizontal row corresponding to the old system's AFUE, then choose the number from that row that is in the vertical column corresponding to the new system's AFUE. That number is the projected dollar savings per hundred dollars of existing fuel bills. For example, if your present AFUE is 65% and you plan to install a high-efficiency natural gas system with an AFUE of 90%, then the projected saving is $27 per $100. If, say, your annual fuel bill is $1,300, then the total yearly savings should be about $27 x 13 = $351.

2. Calculate Return on Investment

ROI = first year savings ÷ installed cost

example:
ROI = $351 ÷ $2,500 = 0.14 = 14

 

 

(Original article: http://aceee.org/node/3065#savings)

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