Simple Payback provides a measure of relative liquidity of an investment. This study established a common basis on which to calculate the long-term cost-benefits, return on investment, and payback using prototype buildings and selected locations to represent the heating and cooling loads and local factor prices that influence the economic efficiency calculations. The initial step in determining the first costs is to calculate the percentage of energy savings between the baseline Standard It is critical to understand that the calculation of the first costs is based on the energy savings. Analytical Approach and Tools for DOD Military Construction and Renovation The exercise provided important feedback for the potential application of the economic efficiency evaluation process for DOD military and construction going forward. The information in these reports was used to estimate the first costs and annual energy savings for Standards In general the representative cities are centrally located within the climate zones.
Table 6 Standard Page Share Cite. The sensitivity analysis of Net Savings addresses the robustness of these results under different conditions, specifically changes in the discount rate from 1. Means cost-estimating system is an industry standard, and is often viewed as generally over-estimating construction costs. Sensitivity Analysis on Study Period. There are differences in the Net Savings between the building types; for instance, the Net Savings for Hotels in each location is higher than the Net Savings for the Offices. Since the scope of this study required comparing the results of the analysis of the specified building standards and rating systems across two building types and five locations, the set of tools also provides a means to view and compare the results across the portfolio of alternatives.
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Plug loads in offices would include computers, monitors, printers, copy machines, vending machines, refrigerators, coffee makers, and desk lamps wni task lighting.
Achieving High Performance Federal Facilities: Energy and water price escalation is a critical factor in long-term cost-benefit analysis, and is particularly relevant to this analysis of the specified building standards and rating systems.
The resulting lower overall energy usage for those building, therefore, provided greater energy savings compared to the baseline prototype buildings. Photovoltaic panels were modeled with EnergyPlus for Std. Major Repair and Replacement Costs—costs related to repair or replacement of major equipment within the study period, with identified timing for replacement.
In this sample, the water savings for the hotels is often more than half of the Annual Net Savings. This study developed an analytical approach to assess the long-term cost-benefits of alternatives for a range wwmi scenarios that represent uncertain future conditions.
The primary objective of this study is to ensure the usefulness of the analytical approach and results to aid decision-making for strategic investments in DOD capital facility syudy. It also required the DOD to provide a policy prescribing a comprehensive strategy for the cost-effective pursuit of design and building standards that include specific energy-efficient standards and sustainable design attributes based on those findings.
Analytical Approach and Tools for DOD Military Construction and Renovation The exercise provided important feedback for the potential application of the economic efficiency evaluation process for DOD military and construction going forward. It must be noted, however, that those results are highly sensitive to the heating and cooling loads for different climate zones and to the local factor unit prices.
Table 5 Standard Use of the existing PNNL models builds upon previous research to improve replicability and robustness of the results, and to expedite this study. There are differences in the Net Savings between the building types; for instance, the Net. These costs could be expected to decrease with improvements in sustainable building systems and materials, and savings in these cost categories could have major cost implications, since these cost expenditures are often several times higher than expenditures for energy and water.
For this study, the Long-term cost-benefit used throughout this report is defined as:.
As a result, there is a high degree of variation among the reported gi costs for this sample of 11 actual buildings that received Green Globes certification Table Specifically, the benefit-cost data for the baseline building cases could be obtained through:.
Study Methodology for Economic Efficiency Analysis. Looking for other ways to read this? The process utilizes xtudy assessors with expertise in green building design, engineering, construction and facility operations.
The major difference between Standards The benefit-cost categories are:.
No data was provided for projected solid waste municipal or hazardous or operations and maintenance general, cleaning or landscaping quantities or costs, so these costs were not included in this analysis. This analysis calculated the Net Savings and other cxse efficiency measures using the energy and acse costs relative to the incremental construction costs initial investment costs compared to the baseline prototype buildings.
Sensitivity Analysis on Study Period. While the direct energy consumption of the interior lights was analyzed the impact of the reduced lighting power was not accounted for in fase of increasing the heating loads and reducing the cool loads.
Consideration of specific choices associated with the application of those standards for design development and implementation should be evaluated grounded in the specific local context. This report presents the methodology used to develop the first costs and the final results.
It is critical to understand that the calculation of the first costs is based on the energy savings.
This study also utilized a subset of five locations from the DOE PNNL set of 15 locations that reflect the diversity of geographic regions across the continental US to create the baseline prototype buildings. The objective of these calculations is to bring future costs and benefits into current year values for direct comparison.
Learning curve and market development for manufacturers of high performance equipment, materials and systems, which reduce the unit prices for initial investment; Learning curve and capacity development for designers architects and engineers of high performance facilities, which improve decision making and reduce the time required to plan, design, and manage high performance facility projects; Learning curve, skill development, and organizational capacity development by general and specialty contractors, which improve the quality and reduce the time required to construct or renovate high performance facilities.
The advantages of this approach are: The climatic conditions for Atlanta are very close to Memphis so applying the data for Atlanta to Memphis was assumed to be appropriate.