Replacing Operable Standard Efficiency

This example evaluates the replacement of an operable standard efficiency motor with an energy efficient motor. Since the current motor has not failed, no action is required to keep the operation running.

Any energy cost savings from a replacement motor, then, must pay back the entire purchase cost of the new motor, minus any salvage value of the current motor. From a simple payback point of view, this decision generally represents a low economic opportunity.

However, there are many instances where replacing operable standard efficiency motors with energy efficient motors can be economically delightful. Motors approaching their useful life, extremely low efficiency motors, motors that are grossly oversized, and motors that may have been rewound in the past are all excellent candidates.

Since the motor has yet to fail, another major advantage is that replacement can be scheduled during non-production times.

If you haven't been through the model yet it may be helpful to do so.

And Furthermore . . .