Open AccessEconomics-Based Payback and Life Cycle Cost Savings Assessment of Inverter Type Air Conditioners
Author(s) -
Sunil Gupta,
B. B. Arora,
Akhi̇lesh Arora
Publication year - 2021
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/1206/1/012023
Subject(s) - inverter , payback period , air conditioning , life cycle cost analysis , automotive engineering , energy cost , cost effectiveness , star (game theory) , reliability engineering , computer science , engineering , environmental economics , operations management , economics , electrical engineering , mathematics , voltage , microeconomics , mechanical engineering , production (economics) , mathematical analysis
This paper investigates the options for a consumer to choose between different inverter and non-inverter type residential air conditioners (ACs) concerning their payback periods ( PPs ) and Life Cycle Cost ( LCC ) savings. The economics-based analysis carried out to evaluate the PPs by which the costs associated with owning and operating 3-star, 4-star, and 5-star inverter AC models are recoverable compared to non-inverter type (baseline model). The product costs ( C p ), the repair costs ( C R ), the maintenance costs ( C M ), and the energy costs ( C E ) are taken as the decision parameters for evaluating the payback periods ( PPs ). It is shown that PP strongly depends on the energy cost. Estimates of P P s are calculated as the futurs value of present cost involved in buying, maintaining, and running the ACs. It is concluded that inverter technology can save electrical energy by 12-22.4% compared to a non-inverter air conditioner. PP of 3-star inverter AC is estimated 2.17 years while P P of 4-star and 5-star inverter ACs are 2.42 years and 2.33 years for 10 hours operation in a day when a higher slab of unit energy cost is considered. Depending on PP and daily usage requirements, a consumer can choose either a less efficient AC priced at a lower initial cost but more running cost or a more efficient AC priced at a higher initial cost but lesser running cost.