Optimizing the total cost of ownership of HVAC systems by using variable speed drives

Optimizing the total cost of ownership of HVAC systems by using variable speed drives

Total cost of ownership (TCO) is a financial estimation of the direct and indirect costs, including various capital and operating costs, related to a product or a system over its full lifetime.

According to the Builders’ Association in the USA the total cost of ownership for an average 40-year-old building is comprised of 20% initial cost of construction, 3% design and construction management fees, 6% financing costs (if paid off in 7 years). And the rest – an enormous 71% – are operating costs including utilities, maintenance, repairs, and capital reserve. More than a half of those costs - 54% - are generated by HVAC systems. It is worthwhile to dig a bit deeper into the operating and capital costs, and investigate the role and impact that HVAC systems have on the building’s TCO over its lifetime. Investing wisely in HVAC automation and control can bring substantial cost benefits.

Read our new application guide to learn how this can be done with help of ABB’s variable speed drives.

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