Reviewing the whole life costs of a commercial heating system

Public Sector Wed, Mar 23, 2016 9:57 AM

Reviewing the whole life costs of a commercial heating system

The UK Government signed up to the 2008 Climate Change Act, making a commitment to cut Britain’s greenhouse gas emissions by 80% (from 1990 baseline) by 2050.

Keith Thompson, Sales & Marketing Director of Hamworthy Heating, commented: “To help the UK achieve these targets we need to educate people to make informed decisions.

"Commercial sector buildings are responsible for 10% of the UK’s greenhouse gas emissions so we need to take stock of what heating and hot water equipment is currently being and how this can be improved.”

There is a large installed base of atmospheric boilers in the UK’s schools, universities and public buildings that need replacing. The efficiency criteria set out in the Energy Related Products Directive (ErP) that will be enforced by September this year will effectively stop the sale of atmospheric boilers.

Keith continued: “More efficient products such as condensing boilers are going to cost more than atmospheric boilers – in both capital and installation costs. This often sways the product choice towards atmospheric boilers. But that view is very short term.”

No longer can we solely focus on the purchase price of a product but instead need to review the economics over the lifetime, taking into account both capital and operational costs of the system. An EU Directive on Public Procurement due to come into force in the UK by 2016 will see public sector organisations choosing the ‘most economically advantageous tender’. This shall be identified on the basis of the price or cost, using a cost-effectiveness approach, such as life-cycle, and may include the best price-quality ratio.

Keith added: “The long term energy savings and financial rewards that can be reaped from upgrading to condensing boilers speak for themselves.”

By opting for the condensing boiler solution you could see a 35% saving in gas consumption – £220,000. Taking into account the increased initial outlay for condensing boilers, a saving of more than £200,000 can still be gained over the life of the boiler – that’s an annual saving of approximately £8,000.

Keith concluded: “The example proves that real, substantial savings can be made by upgrading heating equipment.”

In association with Hamworthy Heating


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