Lifecycle Cost and Impact Analysis

The Glimpse Calculator lifecycle cost and impact analysis of an EIM includes the following calculations:

• First cost, including equipment, labor, and reductions from any applicable rebates
• First-year energy savings, utility cost reductions, and associated emissions reductions from the energy model
• Future year utility cost reductions as calculated from the year-1 utility cost reductions and energy cost escalation factors
• Future year emissions reductions as calculated from the year-1 emissions reductions and grid greening factors for electricity

The following graphic shows all the elements of the lifecycle cost analysis. The rebate is a deduction on the first cost (modelled in year 0). The energy cost escalation factor, specifiable for Glimpse API calculations and configurable for enterprise Glimpse Platform users, increases utility savings even as the energy savings remains constant over the lifetime of the EIM equipment. Payback period, shown in the graphic, is only one of the financial metrics calculated. Others are IRR and NPV of the project.

The lifecycle impact calculation is a similar analysis, but without the year-0 negative, because the embodied emissions of the EIM are not calculated. The first year emissions are similarly changed for subsequent years according to the grid greening factor, as shown in the graphic below.

Equipment and Install Costs

The Glimpse Calculator uses several sources to calculate an estimate of the first-costs of an EIM. The U.S. average costs are detailed for each standard commercial and residential EIM below. These costs are used with the basis information from the energy model to calculate total first-costs of the EIM.

Lifecycle Calculations

First-year cost savings and emissions savings are extrapolated into future year metrics by increasing utility rates year-over-year by an energy cost escalation factor and decreasing emissions associated with electricity usage year-over-year by a grid greening factor. Both of these factors are able to be specified in the Glimpse Tier-1 and Tier-2 APIs. If not specified, the defaults used are 0% grid greening and 5% energy cost escalation.

The estimated useful life of each EIM is given below.

Utility Rates

There are several methods of understanding a utility rate for use in the lifecycle cost and impact calculation of the Glimpse Calculator. In the Glimpse Platform, there are up to 25 specifiable fields that can specify a utility rate from the simplicity of a blended electric rate in dollars per kWh to the detail level of a two-season (i.e., Summer and Winter) and three-time period (on-peak, off-peak, and mid-peak) energy rate in dollars per kWh and demand rate in dollars per kW. For combustible fuels, there are several options of billed units, from volumetric to weight measurements.

In the absence of a specified rate, the Glimpse Calculator takes several steps to try to estimate the utility rate using the building’s zip code, building type, and size. If the first option returns a viable utility rate, the second option is not used. However, if the first option does not return a viable utility rate, then the Glimpse Calculator tries the second option, and so on.

Emissions Factors

The Glimpse Calculator uses emissions factors to convert modeled energy use into estimated emissions for combustible fuels, district heating, and electricity.