The National Energy Modeling System An Overview

The National Energy Modeling System: An Overview 2003

Characteristics of Selected Equipment

Equipment Type	Relative Performance¹	2001 Installed Cost (2001 dollars)²	Efficiency³	2015 Installed Cost (2001 dollars)²	Efficiency³	Approximate Hurdle⁴ Rate
Electric Heat Pump	Minimum Best	$2,930 $5,600	10.0 18.0	$3,500 $5,600	12.0 18.0	15%
Natural Gas Furnace	Minimum Best	$1,300 $2,700	0.80 0.97	$1,300 $1,950	0.80 0.97	15%
Room Air Conditioner	Minimum Best	$540 $760	8.7 11.7	$540 $760	9.7 12.0	140%
Central Air Conditioner	Minimum Best	$2,080 $3,500	10.0 18.0	$2,300 $3,500	12.0 18.0	25%
Refrigerator (18 cubic ft)	Minimum Best	$600 $950	690 515	$600 $950	478 400	19%
Electric Water Heater	Minimum Best	$337 $1,200	0.86 2.60	$500 $1,100	0.90 2.6	83%
Solar Water Heater	N/A	$3,200	2.0	$2,533	2.0	83%
¹Minimum performance refers to the lowest efficiency equipment available. Best refers to the highest efficiency equipment available. ²Installed costs represents the capital cost of the equipment plus the cost to install it, excluding any finance costs. ³Efficiency measurements vary by equipment type. Electric heat pumps and central air conditioners are rated for cooling performance using the Seasonal Energy Efficiency Ratio (SEER); natural gas furnaces are based on Annual Fuel Utilization Efficiency; room air conditioners are based on Energy Efficiency Ratio (EER); refrigerators are based on kilowatt-hours per year; and water heaters are based on Energy Factor (delivered Btu divided by input Btu). ⁴The hurdle rate represents the consumer’s “willingness” to invest in energy efficiency is by weighing the first cost and operating cost of competing technologies. The higher the hurdle rate, the less likely a consumer will invest in energy efficiency. These rates include all financial and non–financial factors (such as size, color) that influence a consumer’s purchase decision. Source: Arthur D. Little, EIA Technology Forecast Updates, Reference Number 8675309, October 2001.