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Title: Cost-Benefit of Improving the Efficiency of Room Air Conditioners (Inverter and Fixed Speed) in India

Abstract

Improving efficiency of air conditioners (ACs) typically involves improving the efficiency of various components such as compressors, heat exchangers, expansion valves, refrigerant and fans. We estimate the incremental cost of improving the efficiency of room ACs based on the cost of improving the efficiency of its key components. Further, we estimate the retail price increase required to cover the cost of efficiency improvement, compare it with electricity bill savings, and calculate the payback period for consumers to recover the additional price of a more efficient AC. We assess several efficiency levels, two of which are summarized below in the report. The finding that significant efficiency improvement is cost effective from a consumer perspective is robust over a wide range of assumptions. If we assume a 50% higher incremental price compared to our baseline estimate, the payback period for the efficiency level of 3.5 ISEER is 1.1 years. Given the findings of this study, establishing more stringent minimum efficiency performance criteria (one star level) should be evaluated rigorously considering significant benefits to consumers, energy security and environment.

Authors:
 [1];  [1];  [1];  [1];  [2];  [3];  [3];  [3]
  1. Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States). Energy Analysis and Environmental Impacts Division
  2. Government of India, New Delhi (India). Bureau of Energy Efficiency
  3. Collaborative Labeling and Appliance Standards Program (CLASP), Washington, DC (United States)
Publication Date:
Research Org.:
Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)
Sponsoring Org.:
USDOE Office of International Affairs (IA). U.S.-India Space Cooling Collaboration
Contributing Org.:
Government of India, New Delhi (India); Collaborative Labeling and Appliance Standards Program (CLASP), Washington, DC (United States)
OSTI Identifier:
1342227
Report Number(s):
LBNL-1005787
ir:1005787
DOE Contract Number:  
AC02-05CH11231
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English

Citation Formats

Shah, Nihar, Abhyankar, Nikit, Park, Won Young, Phadke, Amol, Diddi, Saurabh, Ahuja, Deepanshu, Mukherjee, P. K., and Walia, Archana. Cost-Benefit of Improving the Efficiency of Room Air Conditioners (Inverter and Fixed Speed) in India. United States: N. p., 2016. Web. doi:10.2172/1342227.
Shah, Nihar, Abhyankar, Nikit, Park, Won Young, Phadke, Amol, Diddi, Saurabh, Ahuja, Deepanshu, Mukherjee, P. K., & Walia, Archana. Cost-Benefit of Improving the Efficiency of Room Air Conditioners (Inverter and Fixed Speed) in India. United States. doi:10.2172/1342227.
Shah, Nihar, Abhyankar, Nikit, Park, Won Young, Phadke, Amol, Diddi, Saurabh, Ahuja, Deepanshu, Mukherjee, P. K., and Walia, Archana. Thu . "Cost-Benefit of Improving the Efficiency of Room Air Conditioners (Inverter and Fixed Speed) in India". United States. doi:10.2172/1342227. https://www.osti.gov/servlets/purl/1342227.
@article{osti_1342227,
title = {Cost-Benefit of Improving the Efficiency of Room Air Conditioners (Inverter and Fixed Speed) in India},
author = {Shah, Nihar and Abhyankar, Nikit and Park, Won Young and Phadke, Amol and Diddi, Saurabh and Ahuja, Deepanshu and Mukherjee, P. K. and Walia, Archana},
abstractNote = {Improving efficiency of air conditioners (ACs) typically involves improving the efficiency of various components such as compressors, heat exchangers, expansion valves, refrigerant and fans. We estimate the incremental cost of improving the efficiency of room ACs based on the cost of improving the efficiency of its key components. Further, we estimate the retail price increase required to cover the cost of efficiency improvement, compare it with electricity bill savings, and calculate the payback period for consumers to recover the additional price of a more efficient AC. We assess several efficiency levels, two of which are summarized below in the report. The finding that significant efficiency improvement is cost effective from a consumer perspective is robust over a wide range of assumptions. If we assume a 50% higher incremental price compared to our baseline estimate, the payback period for the efficiency level of 3.5 ISEER is 1.1 years. Given the findings of this study, establishing more stringent minimum efficiency performance criteria (one star level) should be evaluated rigorously considering significant benefits to consumers, energy security and environment.},
doi = {10.2172/1342227},
journal = {},
number = ,
volume = ,
place = {United States},
year = {Thu Jun 30 00:00:00 EDT 2016},
month = {Thu Jun 30 00:00:00 EDT 2016}
}

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