a division of Dorough Resources, LLC

 

 

 

Life Cycle Cost Analysis

Home Up

 

Energy Code Compliance
Building Commissioning
Energy Auditing
Work Plan Development
Life Cycle Cost Analysis
Energy Accounting

Selecting the Most Cost-Effective Alternative

Life Cycle Cost Analysis (LCCA) is a comprehensive evaluation methodology used to determine the most cost-effective of related or competing energy efficiency alternatives for incorporation into a new or remodeled building.  The methodology accounts not only for initial capital costs, but also maintenance and operations costs over the rated life of the alternatives.  

Often, performing an LCCA is the most accurate means to fairly evaluate alternative designs that have greater up-front capital costs but lower long-term operating costs than the least-first-cost design.  High energy- and water-efficiency technologies are often found to be more economically favorable than base-case standard technologies, even though there can be an initial cost premium associated with them.  The LCCA brings the economic viability of implementing such technologies to the forefront.  In such instances, the standard design with the least-first-cost will yield the highest life cycle cost when all operating factors are considered.  

LCCA Factors:

Initial costs of standard vs. alternative design (incl. financing)
Energy consumption and demand costs
Energy Utility Rebates
Water costs
Recurring and non-recurring operations, maintenance and repair costs
Capital replacements
Residual or salvage value at end of rated life

DRS ENERGY MANAGEMENT typically performs these types of analyses for public sector projects in Washington State that require such in compliance with RCW 39.35 and for federal facilities in conjunction with the Federal Energy Management Program's (FEMP) SAVEnergy Audits.  For state construction projects, such analyses are an integral part of the Energy Life Cycle Cost Analysis (ELCCA) Report prepared under the oversight of the Department of General Administration's Engineering & Architectural Services.  

 

 

Copyright © 2002 Dorough Resources LLC