For the same 500-m² retail store considered in Example 14.1 , the baseline case in this example has no air-conditioning system with an EUI of 110 kWh/m²/year and annual sales of US$594/m². Perform a LCC and EP analyses to assess the effectiveness of investing in an energy-efficient air-conditioning system that can improve thermal comfort but increase the EUI to 125 kWh/m²/year. Assume that (i) the cost to install an air conditioner is US$6500, (ii) electricity cost is US$0.10/kWh, and (iii) life of the air-conditioning system is 15 years and the discount rate is 5 percent (so that USPW = 10.4 years), and (iv) sales increases from US$500/m2 to US$600/m2 due to the improved comfort.

Example 14.1

Consider a 500-m² retail store with EUI of 172 kWh/m2/year and an annual sales of US$600/m2. Perform LCC and EP analyses to assess the effectiveness of investing in more energy-efficient air-conditioning system that can reduce the EUI to 125 kWh/m2/year. Assume that (i) the cost of the air conditioner increases from US$5000 to US$6500 when upgrading from standard to energy efficient, (ii) electricity cost is US$0.10/kWh, and (iii) life of the air conditioner is 15 years and the discount rate is 5 percent (so that USPW = 10.4 years), (iv) sales remain unchanged.

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TABLE 14.6 Comparison of AC and EP Indicators for the Retail Store with No Air-Conditioning Equipment and Energy-Efficient Air-Conditioning System Indicator EUI (kWh/m/year) Annual energy use (kWh/year) Initial cost (USD) AC ($/year) Annual sales (USD) Value added (USD/year) EP (USD/kWh) Baseline (No Air Conditioner) 110 55,000 0 5,500 250,000 244,500 4.45 With Air Conditioner 125 62 500 6,500 6,875 300,000 293,125 4.69