compressor replacement vs unit replacement
By 2020 production of R22 Type Refrigerant is scheduled to be reduced by up to 90% of 2010’s volume.
Cost per pound is expected to exceed $80 per pound in these upcoming years.
By 2020, production of R22 Type Refrigerant may cease, or costing to be heavily increased to 3-4 times of today’s rate. A phase out will require a replacement of refrigeration R22 to a R410 System. Why replace a compressor or coil in a unit Today, when you will be required to replace the unit in 3 years anyway?
Green Compliant Programs are regulated by both the Federal and State Governments, which have the power to levy fines. The new units will be Green Compliant, and would eliminate any exposure to fines by operating older inefficient units.
cost analysis
compressor replacement
| Compressor Replacement Cost on a 5 Ton Package Unit | $3,500 |
|---|
- Current Energy Rating – 8 SEER Rating VS New Units 16 SEER Rating
- Useful Live – 3 years remaining until 2020, when R22 may be cost prohibitive
ANNUAL COST REDUCTIONS
Energy Consumption: New Energy Rating is “Two Times” the current consumption efficiency.
RESOLVED OPERATING COSTS
A. Energy Consumption should be reduced by 50%.
- 6hp (5 ton compressor + 1 hp Evap. Motor)
- @ 1 hp/ton per kw @ $ 0.15 per kw
- @ 12 hrs/day @ 365 days
- 60% Energy Use
- Reduction = $2,365 /Year
B. Refrigerant Cost Reduction: Annual consumption for a 5 ton unit is 10 lbs. per year.
- R410 current cost is $20 per pound.
- R22 current cost $60 per pound but is expected to increase to $100 per pound in 3 years.
- 10lbs @ $0 cost per pound difference ($100-$20) = $800 /YEAR usage.
NOTE: Savings will increase to $60 per pound difference in 2018, or $ 600 /YEAR.
C. Service Repair Expense Reduction:
- New units will have no service or repair expense, for 5 Years!
- We provide a 5 Year Labor & Material Warranty!
- Average Annual Service Repair Expense per unit if older unit remains. $750 /YEAR
- ($150/Ton is a national average with a unit over 10 years.) (5 Tons $150 = $750.)
Rebates: As Available, provide a further cost reduction.
SUMMARY - RESOLVED OPERATING COSTS
| Proposed Energy savings reduction | $2,365 |
|---|---|
| Proposed Refrigerant savings reduction | $800 |
| Proposed Repair savings | $750 |
| Total Annual savings | $3,915 |
PAYBACK ANALYSIS
| New Unit Replacement | $8,000 |
|---|---|
| Less: Compressor | $3,500 |
| Less: Reduced Operating Costs | $3,915 |
| Total Added Cost | $585 |
| Payback Period ($8,000 NEW UNIT) | ($ 3,500 Compressor / $ 3,915 operating reduction savings = $7,415) = /.08 years |
|---|
A 1 YEAR PAYBACK!
Notes/Benefits:
- Payback has been provided without factoring in the available rebates!
- Costs associated with store downtime or loss of sales with continued and increasing repairs on an older unit, is eliminated!
- Administrative time associated with continue repairs, delays in quote approval process is eliminated!
- Green compliance is achieved by providing the most Energy Efficient approach!