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June 1, 2019 Calculations for Water Heating Life Cycle Costs This document explains the calculations used in the State of Hawaii Department of Business, Economic Development, and Tourism’s “Water Heating Life Cycle Cost Comparison” worksheet. The spreadsheet cells with formulae cannot be edited. Most of the inputs can be edited. Please note that although the “Lookup Tables” (see tab at bottom of LCCC worksheet) inputs can be modified, all modifications to the lookup table data must be stated on the LCCC worksheet in the “Comments” section at the bottom of page 2, and accompanied by: (1) An explanation of the reason for the modification, and (2) The source of the new data. All sources must be current at the time of submission and publicly available. Please put the above explanation and sources in the “Comments” box near the bottom of page 2 of the LCCC worksheet. The basic formula for annualized fixed cost is: (equipment cost – rebates and tax credits) / equipment life The basic formula for annual operating costs is: amount of energy needed to heat water*cost of energy. The amount of water is determined by the number of people in the household. The amount of energy needed to heat water accounts for efficiencies in energy transfer for electricity and gas in the input, as calculated by the Department of Energy (see link in spreadsheet). The operating cost calculation also utilizes solar fraction calculations for solar water heating, and the Heat Pump COP for heat pump calculations when appropriate. The operating cost for solar water heating accounts for maintenance. Variable list Variable Cell reference Number of people in household B15 Island selective box located at cell B16 Installation cost (dollars) for solar water heater B18 30% federal income tax credit (dollars) for solar water heater, if eligible B19 Energy Factor (percent) B20 Estimated life (years) of the solar water heater B21 Solar Savings Fraction (percent) B22 Requested variance technology selective box located at cell B23 Installation cost (dollars) for requested variance technology (dollars) B24 Rebates and tax credits (dollars) for requested variance technology, if any B25 Energy Factor (percent) for requested variance technology B26 Estimated life (years) for requested variance technology B27 COP (Coefficient of Performance) (percent) (heat pump only) B28

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Page 1: Calculations for Water Heating Life Cycle Costs

June 1, 2019

Calculations for Water Heating Life Cycle Costs This document explains the calculations used in the State of Hawaii Department of Business, Economic Development, and Tourism’s “Water Heating Life Cycle Cost Comparison” worksheet. The spreadsheet cells with formulae cannot be edited. Most of the inputs can be edited. Please note that although the “Lookup Tables” (see tab at bottom of LCCC worksheet) inputs can be modified, all modifications to the lookup table data must be stated on the LCCC worksheet in the “Comments” section at the bottom of page 2, and accompanied by: (1) An explanation of the reason for the modification, and (2) The source of the new data. All sources must be current at the time of submission and publicly available. Please put the above explanation and sources in the “Comments” box near the bottom of page 2 of the LCCC worksheet. The basic formula for annualized fixed cost is: (equipment cost – rebates and tax credits) / equipment life The basic formula for annual operating costs is: amount of energy needed to heat water*cost of energy. The amount of water is determined by the number of people in the household. The amount of energy needed to heat water accounts for efficiencies in energy transfer for electricity and gas in the input, as calculated by the Department of Energy (see link in spreadsheet). The operating cost calculation also utilizes solar fraction calculations for solar water heating, and the Heat Pump COP for heat pump calculations when appropriate. The operating cost for solar water heating accounts for maintenance. Variable list

Variable Cell reference Number of people in household B15 Island selective box located at cell B16 Installation cost (dollars) for solar water heater B18 30% federal income tax credit (dollars) for solar water heater, if eligible

B19

Energy Factor (percent) B20 Estimated life (years) of the solar water heater B21 Solar Savings Fraction (percent) B22 Requested variance technology selective box located at cell B23 Installation cost (dollars) for requested variance technology (dollars)

B24

Rebates and tax credits (dollars) for requested variance technology, if any

B25

Energy Factor (percent) for requested variance technology

B26

Estimated life (years) for requested variance technology

B27

COP (Coefficient of Performance) (percent) (heat pump only)

B28

Page 2: Calculations for Water Heating Life Cycle Costs

June 1, 2019

Water Heater Costs Calculations (annualized) Outputs: Formulae: Solar Solar Fixed Cost (Installation Cost, Solar Water Heater – tax credit, Solar Water

Heater, if eligible) / Estimated Technology Life, Solar Solar Operating Cost [Estimated Annual Hot Water Use, Number of People * Energy to

heat water, Electric * (1 – Solar Savings Fraction) * Energy Rate kWh, island specific] / Solar Energy Factor + [(Installation Costs, Solar Water Heater * .10) / Estimated Technology Life, Solar]

Total Solar Cost

Solar Fixed Cost + Solar Operating Cost

Heat Pump Heat Pump Fixed Cost (Installation Cost, Heat Pump – rebate and tax credits, Heat

Pump) / Estimated Technology Life, Heat Pump Heat Pump Operating Cost Estimated Annual Hot Water Use, Number of People * Energy to

heat water, Electric * (Energy Rate per kWh, island-specific / Heat Pump Energy Factor / Heat Pump COP)

Total Heat Pump Cost Heat Pump Fixed Costs + Heat Pump Operating Cost

Gas with Tank Gas with Tank Fixed Cost (Installation Costs, gas with tank – rebate and tax credits, gas with

tank) / Estimated Technology Life, gas with tank Gas with Tank Operating Cost Estimated Annual Hot Water Use, Number of People * Energy to

heat water, Gas * Energy Rate in Therm, island-specific / Energy Factor

Total Gas with Tank Cost

Gas with Tank Fixed Costs + Gas with Tank Operating Cost

Gas Tankless Gas Tankless Fixed Cost (Installation Cost, gas tankless – rebate and tax credits, gas

tankless) / Estimated Technology Life, gas tankless Gas Tankless Operating Cost Estimated Annual Hot Water Use, Number of People * Energy to

heat water, gas tankless * Energy Rate in Therm, island-specific/Energy Factor

Total Gas Tankless Cost

Gas Tankless Fixed Costs + Gas Tankless Operating Costs

Electric Resistance Water Heater Electric RWH Fixed Cost (Installation Costs, electric resistance water heater – rebate and

tax credits, electric resistance water heater) / Estimated Technology Life, electric resistance water heater

Electric RWH Operating Cost Estimated Annual Hot Water Use, Number of People * Energy to heat water, Electric * Energy Rate per kWh, island-specific / Energy Factor

Total Electric RWH Cost Electric RWH Fixed Costs + Electric RWH Operating Costs

Page 3: Calculations for Water Heating Life Cycle Costs

June 1, 2019

Page 4: Calculations for Water Heating Life Cycle Costs

June 1, 2019

Page 5: Calculations for Water Heating Life Cycle Costs

June 1, 2019


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