Heating, ventilation and air conditioning (HVAC) is responsible for a huge proportion of an organisation’s energy costs, with heating and hot water alone accounting for 60% of total energy use. Current regulations insist that staff cannot work in cold temperatures but, faced with ever-increasing overheads, organisations of all sizes are keeping an eye open for ways to cut costs.
However, the picture is not all doom and gloom according to Simon Garratt, marketing manager at Nortek Global HVAC, who sees whole life costing as a means to reduce energy bills with an associated positive impact on an organisation’s carbon footprint.
There is an understandable temptation to seek out the cheapest heating system on the market, even though this is rarely the most effective way to tackle the issue and is unlikely to result in the most energy-efficient heating solution. Most HVAC system manufacturers now look to whole life costing as a way of helping end users make genuine, sustainable energy savings.
Whole life cost analysis is an economic evaluation process which facilitates an assessment of the true cost of constructing and operating a building over a period of time, based on the functional requirements of that building. Originally used by the accountancy profession, it is effective for new buildings, including design and build projects, and is a pre-requisite for all PFI contracts.
Indeed, given the huge choice of heating systems available, whole life cost analysis is vital if owners of factories, warehouses, schools, hospitals and industrial and commercial premises are to make informed decisions. Paying for a more energy-efficient system may not be the most popular idea, but it makes sound financial sense when you consider the true value of the HVAC solution, as opposed to focussing on the initial capital outlay.
According to government information, the most reliable indicator of ‘value’ in the construction industry is the relationship between long-term costs and the benefit achieved by the end user. And when it comes to heating, best value is gained from a system that achieves the required functionality at lowest cost when calculated over the whole life of the equipment. Taking action to reduce energy consumption makes sense both financially and environmentally.
High efficiency condensing units may require a higher capital investment at the outset, but are economical and can repay that extra initial cost in fuel savings in two to four years, depending on usage, with up to a 30% saving on replacement heaters. Meanwhile, air curtain technology can dramatically lower energy bills by reducing heat loss by up to 80%, providing more comfortable conditions for the building occupants as well as creating a barrier to minimise heat loss across open doorways.
An array of controls helps to reduce expenditure on energy even further. Intelligent energy management controls can be utilised in small single heat installations through to large multi-zoned applications, creating easy to use, cost-effective energy management solutions that go a long way towards eliminating energy wastage.
An RAF air base in Coltishall is benefitting from genuine energy savings after adopting this approach. Previously using a highly inefficient high temperature hot water distribution system, the base was keen to examine ways in which it could lower operational costs by reducing its extensive fuel consumption. Following an investigation into the options, taking into account whole life costing, radiant tube heating was found to be the best solution to deliver long-term value.
Just a few months after the system was installed, energy consumption had reduced dramatically. Compared to its previous boiler system, the base saw a 64% reduction in heating costs, while emissions were down by 55%. Over a ten year period, it was calculated that the base would achieve discounted savings of near £150,000.
The whole life costing approach to achieving economic heating can benefit every sector. And, with forward thinking HVAC manufacturers strongly backing the methodology, there is the potential for nationwide savings to be in the millions. With fuel price uncertainty here to stay, it makes sense to adopt a long-term energy strategy. And since today’s HVAC solutions are integral to that strategy, and may well save organisations thousands of pounds, there is little point in delaying.
