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Lifecycle Costs Help Justify HVAC System Upgrades


As many buildings’ heating and cooling systems near the end of their useful life, more and more facility managers are considering high efficiency replacement options. A recent article from Facilitesnet explores how these facility managers can justify efficient HVAC systems, which typically have a higher upfront cost, through examining the lifecycle costs.

The most widely used equipment analysis is simple payback, which looks at the cost of the equipment versus the annual savings to determine how many years of savings it will take to recover the initial cost.

However, this isn’t a complete view. In order to understand a system’s true lifecycle costs, the costs for maintenance, labor, financing, etc. most also be included. While this can be more difficult to calculate since it relies on predictions, it provides a more realistic cost analysis.

When considering YANMAR’s variable refrigerant flow natural gas heat pumps, we will conduct a performance summary for your specific application that will look at all of these costs, including projected savings, to understand the true payback period.

YANMAR’s VRF gas heat pump systems use natural gas to drive dual scroll compressors, which reduces electricity usage by up to 90% compared to traditional air conditioning systems. Additionally, our maintenance interval (changing the oil, filter and plugs) is 10,000 hours or approximately every two to three years; this means more uptime and less maintenance and labor costs for your system. These savings combined with improved operating efficiency even in cold climates due to engine heat recovery and emissions reductions result in a 30 to 70% reduction in overall lifecycle costs depending on local utility costs.

Find out how you can reduce your HVAC’s lifecycle costs by installing YANMAR’s natural gas heating and cooling system by starting a performance summary for your building today.