Case study 9: Building management system
Find out how a property company using on-bill financing to finance a new building management system determined that it would be better off by about $64,000 over 15 years.
A property company owns and operates a mixed use building that includes office space and retail space. This building is served by a central air-conditioning system that is controlled by an out-dated building management system (BMS). This system is over 10 years old, no longer supported by the vendor, and does not provide a sufficient level of control to manage and optimise control strategies. It seeks to upgrade it seeks to upgrade its BMS system.
How does the energy-efficient (EE) system compare to the standard system?
|Cost to install ($)
|Operation and maintenance cost ($ p.a.)
|Electricity use (kWh p.a.)
|Equipment life (years)
|Electricity cost reduction in first year from EE ($)
|Simple payback period for EE (years)
|Simple payback period for EE, with marginal capital1 (years)
Finance option selected: On-bill financing
The company is a customer of Origin Energy and decides to seek on-bill financing to finance its new Building Management System, as this results in the highest expected NPV.
1This is the payback period for the energy-efficient (EE) option using the difference in capital outlay between the standard and EE equipment, rather than the full capital outlay for the EE equipment.
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Page last updated: 10 December 2015