An Overview Of Life-Cycle Cost Analysis Page 18
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21Examples of Net Savings and SIR
Installed
PV Energy
PV O&M
PV
Net
Scenario
Cost
Costs
Costs
Residual
LCC
Savings
SIR
Base Case
$0.00
$500.00
$110.00
$0.00
$610.00
Alt1
$200.00
$330.00
$60.00
$78.35
$511.65
$98.35
1.81
Alt2
$210.00
$300.00
$60.00
$61.70
$508.30
$101.70
1.69
Base Case
$0.00
$750.00
$150.00
$0.00
$900.00
Alt1
$125.00
$600.00
$120.00
$25.58
$819.42
$80.58
1.81
Alt2
$120.00
$575.00
$120.00
$12.28
$802.72
$97.28
1.90
Within the two sets of mutually-exclusive options, choose the option with the lowest
LCC, and thus this highest net savings.
To prioritize scarce funds among the two "winners,” use the SIR.
The second example's "winner" provides about 82% of the energy and O&M savings
for about 3/4 of the required investment.
18
Energy Exchange: Connect • Collaborate • Conserve
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