1

Analysis of Cost and Savings Values for Revised Energy Star Freezers

and Refrigerators

June 6, 2006

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Issue Summary

• Energy Star efficiency minimums increased from 10% to 15% in 2004

• Existing deemed savings and cost based for Energy Star refrigerators not updated since 2002

• No prior RTF analysis of deemed savings and cost-effectiveness for Energy Star Freezers due to few qualifying models

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Analytical Approach

• Data Sources – Retail Price– Oregon Residential Tax Credit Data for 2005 for

Refrigerators• Retail Prices paid - (including “in store” rebates/discounts)

– Web survey of major online retailers (Sears, Lowes, AJ Madison)

• Data Source – Energy Savings– Use DOE Test Procedure– Use FTC Energy Guide Model Listings

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Side-by-Side Refrigerators Cost Data

• 2005 Tax Year – Retail Price data on 1500 units– Minimum 20% above federal standard

• Web Survey– Retail Price Data on 184 units– Federal standard and above efficiency

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Top and Bottom Mount Refrigerators

• Top Mount Freezer Refrigerators– Web Survey

• Retail Price Data on 131 units

• Federal standard and above efficiency

• Bottom Mount Freezer Refrigerators– Web Survey

• Retail Price Data on 92 units

• Federal standard and above efficiency

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Freezers

• Upright– Web Survey

• Retail Price Data on 72 units

• Federal standard and above efficiency

• Chest– Web Survey

• Retail Price Data on 35 units

• Federal standard and above efficiency

7

Cost vs Efficiency Analysis

• Energy Use is a function of configuration and capacity

• Regressions performed on cost and capacity data for each configuration to derive relationship between energy use and retail price

• Data set was constrained to find “minimum price” to achieve a each level of energy use

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Upright Freezer Regression Results

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Chest Freezer Regression Results

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Top-Mount Refrigerator Freezer Regression Results

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Bottom-Mount Refrigerator Freezer Regression Results

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Side-by-Side Refrigerator Freezer Regression Results

Freezer ResultsMeasure Name Incremental

Capital Cost ($/unit)

Annual Savings @ Site (kwh/yr)

Benefit / Cost Ratio

Energy Star Upright-Manual Defrost Freezer $19 48 1.87

Energy Star Upright-Auto Defrost Freezer $37 94 1.87

Energy Star Chest Freezer $12 34 2.01

Energy Star Freezer - Any Type & Capacity $18 48 1.98

Refrigerator ResultsMeasure Name Incremental

Capital Cost ($/unit)

Annual Savings @ Site (kwh/yr)

Benefit / Cost Ratio

Energy Star Refrigerator with Bottom Freezer - No Ice $12 101 6.22

Energy Star Refrigerator with Bottom Freezer - Ice $18 156 6.22

Energy Star Refrigerator with Top Freezer - Ice $27 86 2.28

Energy Star Refrigerator with Top Freezer - No Ice $27 84 2.28

Energy Star Refrigerator - Any Configuration $68 73 0.78

Energy Star Refrigerator with Side-by-Side - No Ice $199 110 0.4

Energy Star Refrigerator with Side-by-Side - Ice $217 120 0.4

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Issue

• Side-by-Side Refrigerators are represent a growing share of the market– Incremental cost data derived from both Tax Credit

and online retailers appear to indicate that Energy Star cost for this configuration are 9-10 times higher than other configurations

• Can this be true????