HomeMy WebLinkAbout01282019 City Council Mtg Laydown - Heat Pump Economics for Seward )(( 'D l 2- 3
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Heat Pump Economics for Seward '
Fact Sheet
My Assumption: 2000 mini splits installed in Seward homes and businesses. They displace on average 500
gallons of oil each (some more - some less) X 2000 = 1 million gallons oil displaced each year. How do
we get there? Utility incentives like On-Bill Repayment (Alaska HB 374), utility rebates, incentive rates,
customer education. Plenty going on in the lower 48 utilities to evaluate.
Savings to Heat Pump users: $1 for every gallon of oil displaced with the heat pump X 500 gal X 2000
heat pumps = $1 Million dollars a year total heat pump fuel savings at today's oil and electric rates.
Utility Benefit: To operate those heat pumps, the City utility will sell an additional 11 kWh for every gallon of
oil replaced with a heat pump X 1 million gal displaced/yr = 11 Million kWh/yr sales with additional profit
somewhere around $800,000/year. That added utility profit can lower electric rates, pay for maintenance
and system upgrades benefiting all electrical customers.
Economic SUM: Between the heat pump users ($ 1 million) and the city utility profit ($800,000) the
community will save 1.8 million dollars a year.
Environmental Benefit: CO2 emission savings: 1 gal/oil displaced with gas electric generation = 10 lbs
CO2 net reduction X 1 million gal/yr = 10 Million lbs of CO2 avoided or 4500 metric tons per year Plus
$40/tonn potential carbon credit (Recent ADN article) = $180,000 annually. Less diesel exhaust, less fumes
and diesel odors indoors, reduced fuel spill risk, etc.. And, as we add more renewables to our generation
mix, the more environmentally sound heat pumps become.
Cost: 2000 mini-splits at $4000 ea = $8 Million dollars invested.
Bottom Line: $8 million cost / $1.8 million dollars annual savings = 4.4 year simple payback for the
community.
My Contact Info:
Phil Kaluza, Arctic Energy Systems
Box 3234 Seward, AK 99664
okaluza(a.gmail.com
text/cell: 907-360-6337
Mini-Split Heat Pump Installed
11.
ai
°74—
RESOURCES:
Mini-Split Heat Pumps in Alaska
COST-EFFECTIVE APPLICATIONS AND PERFORMANCE OBSERVATIONS:
http://www.analysisnorth.com/pages/projects.html
Alaska Heat Pump Calculator: https://heatpump.cf
Department of Energy Heat Pump Page:
httos://www.enerqy.aov/energysaver/heat-and-cool/heat-pump-systems
Alaska Cold Climate Housing Research Center Heat Pump Page:
http://www.cchrc.org/heat-pumps
NEEP Cold Climate Heat Pump Resources
Product List:
https://neep.org/initiatives/high-efficiency-products/emerging-technologies/ashp/cold-clim
ate-air-source-heat-pump