The total cost of complying with the proposed code and appliance standard is estimated to be about $7.1 million each year. For this investment, ratepayers will realize annual energy savings representing about $7.2 million. The simple payback is just over a year.
The requirements of the code and appliance standard are very cost effective for all building types and for all measures. Figure 10 shows the reductions in life-cycle cost that are attributed to the proposed code and appliance standard.
Most of the cost is associated with improving the building envelope. Envelope measures account for 44% of the compliance costs or $3.1 million per year (see Figure 7). Much of this cost is associated with added insulation and special coatings for roofs. The majority of the remaining cost is associated with improved glazing. Figure 8 shows more details about the costs associated with building envelopes.
Lighting represents about 28% of the compliance cost or about $2.0 million (see Figure 7). Most of this is related to the purchase of more efficient lamps and ballasts and the addition of better controls. The code does not require specific products, but rather it sets limits for maximum lighting power and other more general requirements. It is expected, however, that the market share of electronic ballasts and small diameter (T-8) lamps will increase significantly when the code is implemented.
Envelope measures represent 33% of the life-cycle cost savings or about $11.4 million (Figure 10). Lighting represents 14% of the savings. Figure 11 shows more details about the life-cycle cost associated with building envelopes.
Better air conditioners and water heaters represent about 25% of the compliance cost or about $1.8 million (see Figure 7). Equipment brought onto the island would have to meet the federal standards for appliance efficiency, already enforced on the mainland United States.
At 42%, air conditioners are the majority of life-cycle cost reductions (Figure 10). Air conditioners will life-cycle cost by about $14.4 million each year. Water heating represents 11% of the life-cycle cost savings.
Figure 9 shows the compliance cost by building type. Single-family homes and offices account for most of the cost, but these costs are mostly a reflection of projected construction activity as the cost per square foot are similar for most building types.
Figure 7 - Compliance Cost By Requirement Type - Guam
Figure 8 - Compliance Cost of Envelope Requirements - Guam
Figure 9 - Compliance Cost by Building Type - Guam
Figure 10 - Life-Cycle Cost Reduction By Requirement Type - Guam
Figure 11 - Life-Cycle Cost Reduction of Envelope Requirements - Guam
Figure 12 - Life-Cycle Cost Reduction by Building Type - Guam
