Total Cost Formula:
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Definition: This calculator estimates the total cost of owning and operating an air source heat pump (ASHP) over a specified period.
Purpose: It helps homeowners and businesses evaluate the financial aspects of installing an ASHP system.
The calculator uses the formula:
Where:
Explanation: The total cost combines the one-time installation expense with the cumulative running costs over the specified period.
Details: Accurate cost estimation helps in budgeting, comparing with other heating systems, and evaluating return on investment.
Tips:
Q1: What's included in installation cost?
A: Equipment purchase, labor, permits, and any necessary electrical upgrades or ductwork modifications.
Q2: How do I estimate running costs?
A: Check local electricity rates and multiply by estimated annual kWh usage, plus about 1-2% of installation cost for annual maintenance.
Q3: What's a typical lifespan for ASHP?
A: Most quality ASHPs last 15-20 years, though 10 years is common for cost comparison purposes.
Q4: Should I include government incentives?
A: Yes, subtract any rebates or tax credits from the installation cost before entering it.
Q5: How does this compare to traditional systems?
A: While ASHPs have higher installation costs, they typically have lower running costs than oil/gas systems.