Professional Documents
Culture Documents
Initial and Operational Cost of Different Air Conditioning Systems in GCC A Supporting Case For VRF Systems - Conserve Solution
Initial and Operational Cost of Different Air Conditioning Systems in GCC A Supporting Case For VRF Systems - Conserve Solution
KNOWLEDGE BASE
In one of our recent projects targeting GSAS Certification, we have advised the client to change the HVAC
system from Split to VRF. The client asked us about the return of investment and payback period. We have
worked out on the initial and operational cost for different AC systems. We are publishing the basis of
calculation, so that it can guide other projects pursuing LEED or GSAS Certification to choose the right system
3. Financial analysis of VRF over air cooled central system and split /package system
Note: The prices can vary based on the manufacturer, project specifications, Air distribution system etc. The
prices mentioned here only approximate based on interview with different manufacturers and contractors.
In the absence of much literature on Energy performance of different AC systems in the region, the study
recently conducted by RSB Dubai appears to be very close and hence we will consider the same for our
calculation
Privacy - Terms
https://www.conservesolution.com/blog/cost-of-different-air-conditioning-systems-gcc/ 1/6
04/01/2024, 10:41 Initial and Operational Cost of different Air Conditioning Systems in GCC: A supporting case for VRF Systems - Conserve Solution
Reference: http://www.rsbdubai.gov.ae/wp-content/uploads/2016/03/20160210-Webtext-Dubai-Cooling-
Study.pdf
It is very clear that district cooling plants are the most efficient followed by water cooled central cooling
system.
1. Financial analysis of VRF over air cooled central system and split/package system
The prices of Air cooled system and VRF systems are very much similar hence there is no incremental capital
cost for the project. The operational cost VRF system is lesser resulting in significant reduction in Life cycle
cost of the AC system
Energy Consumption in Central Air Cooled System per annum = 500 TR * 3750
https://www.conservesolution.com/blog/cost-of-different-air-conditioning-systems-gcc/ 2/6
04/01/2024, 10:41 Initial and Operational Cost of different Air Conditioning Systems in GCC: A supporting case for VRF Systems - Conserve Solution
Energy Consumption in VRF System per annum = 500 TR * 3750 Equivalent Full load operational Hrs. * 1.07
KW/TR
=2006250 kWh
Energy Cost per annum = 2006250 kWh * 0.35 QAR/kwh = 702187
Considering the life of the equipment to be 10 years, the life cycle cost savings shall be 2.3 Million QAR.
The prices of split or package shall be around lesser by QR 2500/TR compared to VRF systems.
Energy Consumption in split or ducted AC system per annum = 500 TR * 3750 Equivalent Full load operational
=3037500 kWh
Energy Cost = 3037500 kWh * 0.35 QAR/kwh = 1063125
Energy Consumption in VRF System per annum = 500 TR * 3750 Equivalent Full load operational Hrs. * 1.07
KW/TR
= 2006250 kWh
In the next article we will discuss more about commercial aspects of Energy Conservation Measures like Life
cycle cost, Net Present Value (NPV) and Internal rate of Return (IRR) which is useful in Energy Audit.
If the project is evaluating VRF against Air Cooled chilled water system and if there is feasibility of VRF
systems. The straight choice would be to go for VRF system. If the project is evaluating VRF against split units
the decision has to be taken based on financial priorities.
Conserve Solutions will be happy to assist your projects. Our offices are located in India, UAE, Qatar, Saudi
Author
Bazeeth Ahamed K M
Mr. K M Bazeeth Ahamed is an USGBC LEED Faculty & consultant in Green Buildings. He has
completed his Post Graduation in Mechanical Engineering from Birla Institute of Technology in
2002 and has spent 12 years in Academics, Research, MEP Contracting, Energy Audits and
Green Building Consultancy.
https://www.conservesolution.com/blog/cost-of-different-air-conditioning-systems-gcc/ 3/6