Assumptions to the Annual Energy Outlook 2003

Table 11.  Installed Cost and Efficiency Ratings of Selected Equipment

Equipment Type

Relative Performance1

 2001
Installed Cost ($2001)2

     Efficiency3

2015
Installed Cost ($2001)2

 Efficiency3

Approximate
Hurdle 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 are given in 2001 dollars.
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).
Source:  Arthur D. Little, EIA Technology Forecast Updates, Reference Number 8675309, October 2001.