Professional Documents
Culture Documents
www.elsevier.com/locate/renene
Abstract
This study clarifies the law of diminishing returns when improving the conservation level
of residential buildings by using case studies simulation. It explores the effect of different
climates on the decision of selecting the insulation type and thickness. It shows the importance
of using the life-cycle cost model on the decision of adding more insulation levels and knowing
when to stop. RENCON program was employed to estimate the annual heating and cooling
requirements of a 108 m2 house. The analysis was carried out for several cases of two types
of roof insulation (polystyrene and fiberglass) in two different locations (College Station, Texas
and Minneapolis, Minnesota.) R5 was found to be the most cost effective thermal resistance
in polystyrene in both locations. In fiberglass, R10 was the most cost effective. It was found
that investing money to improve the insulation levels in the cold climate house has better
returns than that of the warm climate.
2002 Elsevier Science Ltd. All rights reserved.
Keywords: Life-cycle cost; Payback time; Law of diminishing returns; Energy conservation; Thermal
resistance
1. Introduction
About 25 years ago, when the cost of energy was relatively affordable, many
buildings in the United States and also in other parts of the world were still built
without insulation in the walls. As a consequence of the energy crises of 1973,
0960-1481/03/$ - see front matter 2002 Elsevier Science Ltd. All rights reserved.
PII: S 0 9 6 0 - 1 4 8 1 ( 0 2 ) 0 0 0 6 5 - 4
604 K.A. Al-Sallal / Renewable Energy 28 (2003) 603–611
Fig. 1. Recommended insulation zones for heating and cooling (from Hoke, 1988 [3]).
K.A. Al-Sallal / Renewable Energy 28 (2003) 603–611 605
Fig. 2. A comparison of the thermal resistance of various materials based on 1-inch thick samples (from
Lechner, 1991 [4]).
2. Experiment
The RENCON simulation program, developed by Degelman and Kim (1991) [2],
was employed to estimate the annual heating and cooling requirements of a 108 m2
house. The definitions and mathematical expressions of the terms used in the simul-
ation are described in Table 1. The analysis was carried out for several cases of two
types of roof insulation (polystyrene and fiberglass) in two different locations
(College Station, Texas and Minneapolis, Minnesota). The significant difference in
cost was considered in choosing these two types of insulation in order to generate
sufficient viable results to infer the conclusions. The plan of the experimental house
is shown in Fig. 3. The initial data used in the economical analysis simulation are
summarized in Table 2 in four different groups. Each group is identified by the
insulation type and the location and consists of six cases in addition to a base case.
The base case, named as 0, is defined as the one that has no modifications and
as the starting case of each group. The other cases are named according to the roof
insulation resistance used in each one of them (i.e. R5, R10, R15, R20, R25, and
R30). For each group of cases, three curves representing the investment cost, the
uniform annual cost, and the total life-cycle cost are plotted, as shown in Figs. 4
and 5. The highest cost effective cases in each group (i.e. the optimum insulation
resistance) can be known from the lowest point of the total life-cycle cost in these
charts. Another indicator of the highest cost effective cases is the payback time.
Table 3 shows the payback time for all cases expressed in years. Fig. 6 illustrates
the law of diminishing returns, in which the incremental savings are compared to
the incremental cost. One can view that the incremental costs in all cases remain
almost stable whereas the incremental savings decrease rapidly.
3. Analysis
From the energy analysis carried out for a 108m2 house in two different locations
and with reference to Table 3, and Figs. 4–6, the following findings can be drawn:
앫 When polystyrene is used to insulate the roof of the College Station house, R5
is found to be the most cost effective. The total life-cycle cost is 2185 $/yr, the
lowest among its group. It has also the lowest payback time; less than 1 yr (about
7 months).
앫 When fiberglass is used in the same location, R10 is found to be the most cost
effective. The total life-cycle cost is 1647 $/yr and the payback time is 0.4 yr
(4.8 months).
앫 Similar to the College Station house, insulating the roof of the Minneapolis house
by R5 polystyrene is found to be the most cost effective in its group. The total
life-cycle cost is 3327 $/yr and the payback time is 0.3 yr (3.6 months).
앫 Again, another similarity between the College station house and the Minneapolis
house, insulating the roof of the Minneapolis house by R10 fiberglass is found
Table 1
Definitions and mathematical expressions of the terms used in the simulation
to be the most cost effective in its group. The total life-cycle cost is 2690 $/yr
and the payback time is 0.1 yr (1.2 months).
4. Conclusion
앫 The payback time of using insulation in a cold climate is shorter than that of a
warm climate. That is because of the considerable energy costs savings, which
resulted from using insulation in cold climates. Investing money to improve the
insulation levels in a cold climate house has higher returns than that of the
warm climate.
앫 It is recommended to use the incremental savings with comparison to the
incremental cost rather than the average cost in order to determine when to stop
adding more insulation. This is also true with any kind of improvements that can
reduce the utilities bills such as improving the conservation levels, adding solar
systems, or adding mechanical systems.
앫 It is recommended to use the life-cycle cost rather than the construction budget
Table 2
Initial data used in the economical analysis simulation
a
Annual payments on investment is based on 10% interest rate and 20 years of economic life.
609
610 K.A. Al-Sallal / Renewable Energy 28 (2003) 603–611
Fig. 4. Investment cost, uniform annual cost, and total life-cycle cost of polystyrene cases in College
Station (left) and Minneapolis (right).
Fig. 5. Investment cost, uniform annual cost, and total life-cycle cost of fiberglass cases in College
Station (left) and Minneapolis (right).
Table 3
Payback time for all cases expressed in years
limitation when making a decision to use a certain system. The life-cycle cost
includes not only the initial construction costs but also the continuing costs of
heating and cooling the building through its lifetime.
K.A. Al-Sallal / Renewable Energy 28 (2003) 603–611 611
Fig. 6. Incremental savings of polystyrene in College Station (left) and Minneapolis (right).
References
[1] Balcomb JD. Passive Solar Heating Analysis—A Design Manual. ASHRAE, Atlanta: Los Alamos
National Laboratory, 1984.
[2] Degelman L, Kim B. RENCON program for Energy Simulation. College Station, TX: Texas A&M
University, 1991.
[3] Hoke JR, editor. Architectural Graphic Standards Ramsey/Sleeper. 8th edition. New York: John
Wiley; 1988.
[4] Lechner N. Heating, Cooling, Lighting: Design Methods for Architects. New York: John Wiley
Inc, 1991.