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Air Conditioning World: The whole-life cost approach...

Whether an installer is specifying a new or replacement air conditioning system, it is vitally important he embraces the concept of whole-life costs by educating the end-user on the key benefits of this concept. Here, Simon Keel at Daikin Airconditioning UK, outlines what end-users need to know from installers so they can release the real value of their equipment
Air Conditioning World: The whole-life cost approach...
THE greatest concern for the majority of end-users when looking at an air conditioning system for their premises is purchase price. This means many installers are being asked to keep capital costs low to provide their customers with the best return on investment in the short term.

However, the capital outlay of the equipment is distracting end-users from the impact that whole-life costs and best overall value can have on the profitability and productivity of their business.

A system's overall efficiency, running costs, and servicing and maintenance have a more important bearing on how much an air conditioning system will end up costing, therefore it is vitally important that installers communicate these issues to their customers to put them in a better position to make an informed choice.

Essentially, whole-life costs for air conditioning equipment are the costs incurred by running equipment throughout its lifetime. These can be divided into two sections.

First, there are the financial costs such as initial purchase price, annual energy bills and service and maintenance charges.

Secondly, there are hidden costs such as downtime, staff performance, customer comfort and, perhaps the most important, the cost to our climate.

Installers also need to make end-users aware of government legislation that has been introduced on commercial and industrial buildings to address climate change issues and reduce carbon emissions.

It has been well documented in the trade media that Part L2A (new buildings) and L2B (refurbishments) of the Building Regulations and the Energy Performance of Building Directive (EPBD) set a minimum standard to which buildings must adhere, addressing the total carbon emissions in order to stem the impact of climate changing global warming.

While building services consultants will understand the impact of these legislation requirements, there is still a lack of knowledge amongst end-users on what they need to do to comply.

It is therefore vitally important installers guide them through this process, ensuring more energy efficient materials and plant, such as air conditioning systems, are specified and the key benefits of this technology are understood.

Looking beyond purchase price, one of the key drivers for installing air conditioning equipment that an installer needs to get across to the end-user is the benefit that a system will have for customers and staff.

Air conditioning is designed to create comfort in the internal environment, producing a fresh-feeling indoor climate which is warm in the winter and cool in the summer, both with the minimum of draught and noise.

Control, effectiveness and quiet trouble-free running are essential to achieve the customer comfort and staff productivity that is the primary objective of having the installation.

The second driver is the energy savings that can be made. As the market leader for innovative and energy efficient air conditioning systems, Daikin UK produces a range of solutions for all applications, whatever the size.

Our systems offer significant energy savings on fuel bills for the end-user, a major reduction in operating costs, low carbon emissions and lower noise levels than those of contemporary systems.

For example, the running costs of air conditioning are not as high as some end-users would first expect.

Typically, a Daikin 3kW inverter heat pump system in a 30m2 office might only cost approximately £3.58 per week.

Using a heat pump for heating could consume less than a third of the energy of a radiator system, along with giving a more even and controllable temperature.

Thirdly, it is essential that installers communicate the importance of a planned maintenance contract. This is essential to ensure a system is operating at its maximum efficiency all the time.

Coupled with the right initial choice of a well proven machine, it will ensure longevity and save the expense of premature replacement. It also offers installers an increased profit opportunity long term.

Overall, with installers adopting the whole-life cost approach and concentrating on a range of issues that may impact on their customers' profitability and productivity, the reward for the end-user will be a more energy efficient and well maintained system, which effectively controls the internal environment by improving customer comfort and staff productivity.

To complement this, it will also build end-user trust that the installer he is working with is competent and confident in commissioning and installing an air conditioning system into hispremises which will offer maximum return for the business.
1 March 2007

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