Case study: Refrigeration
Find out how a mushroom supplier determined that they would be better off by about $340,000 over 15 years if they invested in an energy-efficient system.
A mushroom supplier is seeking to replace their old refrigeration compressor equipped chillers. They are considering two options: two 900 kW screw compressor equipped chillers or two 900 kW high-efficiency compressor equipped chillers.
How does the energy-efficient (EE) system compare to the standard system?
|Cost to install ($)
|Operation and maintenance costs ($ p.a.)
|Electricity use (kWh p.a.)
|Equipment life (years)
|Electricity cost reduction in first year from the system ($)
|Simple payback period for the system (years)
|Simple payback period for the system, with marginal capital1 (years)
Financial option selected: Energy-efficient loan.
The company decides to seek an energy-efficient loan to fund its refrigeration upgrade as this financial option 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