Conclusion
Approximately 3500 items were identified in 25 buildings and 56 mechanical rooms in the pilot program, with estimated annual energy savings of approximately 6 billion Btu per year, a resulting overall payback period of four years, and an annualized rate of return of 24 percent. Associated reductions in CO2 emissions are estimated at 300 metric tonnes per year.
While the savings from a single item is small, the aggregated total savings from thousands of small items is significant. The appraisal results confirm the value of addressing missing, damaged, or uninsulated areas. The payback period and internal rate of return are based on actual operating conditions, 80-F (27-C) ambient temperature, service temperature, and hours of operation (in many cases, less than half a year).
The results tell an impressive story for the maintenance of mechanical insulation in commercial building applications. The findings confirm the energy savings, emission reduction, and financial benefits of looking at mechanical insulation differently.
Notes
1 An earlier version of this article appeared in the May 2011 issue of the National Insulation Association’s Insulation Outlook publication. (back to top)
2 Annual Heating Degree Days over this four-year period averaged 7751, or about 0.9 percent higher than the long-term average for Helena. Visit www.insulationoutlook.com/io/article.cfm?id=IO110501#fn1. (back to top)
3 For site EUI calculations, 1 kWh of electrical energy is 3412 Btu and 1 dekatherm is 1,000,000 Btu. Electrical consumption at the Montana Law Enforcement Academy Complex is billed from a master meter, so EUI could not be broken out for the portion of that campus analyzed. (back to top)
4 Energy costs are volatile and notoriously difficult to predict. While long-term energy costs are expected to increase, recent natural gas costs have been falling. A fuel cost escalation rate of 0 percent seems reasonable for this analysis. If a three percent annual fuel cost escalation rate was assumed, annualized returns would increase by about three percent. For example, the 27 percent return estimated for the Capitol building would increase to 30 percent if a three percent/yr fuel cost escalation rate was used. (back to top)
Christopher P. Crall, PE, is a mechanical engineer with experience in thermal insulation and energy usage in commercial buildings and industrial applications. He is currently providing consulting services in the areas of building energy standards, energy analysis, heat and moisture transport, and mechanical insulation specifications and applications. Crall is an active ASHRAE member and was the primary author of the 2005 ASHRAE Handbook chapter titled “Insulation for Mechanical Systems.” He is also active as a member of the ASTM Committee on Thermal Insulation (C-16). Crall can be reached at ccrall@gmail.com.
Ronald L. King is a past president of the National Insulation Association (NIA), the World Insulation and Acoustic Organization, and the Southwest Insulation Contractors Association. He has been awarded the NIA President’s Award twice. King is a 40-year veteran of the commercial and industrial insulation industry, during which time he held executive management positions at an accessory manufacturer and a specialty insulation contractor. He recently retired as the chairman, CEO and president of a large national insulation distributor/fabricator and is currently a consultant and advisor. King can be contacted via e-mail at ronkingrlk@aol.com.
Hi, I work with Indiana Legislative Services and would like to know the average cost of installing mechanical insulation. I understand this is difficult to estimate, but if you could provide some sort of range I’d appreciate it.