Financial Data

Comments: 
Oil rate 
$ 

/litre 
Get from fuel bills 
Gas rate 
$ 

/m3 
Get from fuel bills 
Electricity rate 
$ 

/kWh 
Get from power bills 
Minimum Acceptable Rate of Return (MARR) 


% 
This is the rate of return you insist on for your money
(in our household, it's our mortgage rate, since any "extra" money we
have gets plopped in our open mortgage) 
Time horizon 


years 
How long do you expect to be in the house? 
Minimum difference to make a decision 


% 
Within this percentage, you would consider the decision
a wash financially (which is different from taking a bath financially). 
Data on Current Furnace

Annual cost of oil 
$ 

/year 
From oil bills for the year. 
Annual oil consumption 


litres/year 
From billed oil cost divided by rate 
Percentage of oil used for heat 


% 
If you use oil only for heat, enter 100%. If you also use oil for heating water, it will be closer to 75%. 
Annual oil consumption for heat 


litres/year 
From previous calculation and oil heat percentage 
Annual heating energy consumption 


MJ/year 
From oil consumption times 38.2 MJ/litre 
Annual furnace fan electricity consumption 


kWh/year 
Estimated from Dave's experience. 
Annual GHG Emissions 


kg CO2e/year 
Based on 0.07311 kg CO2e/MJ energy from oil and 0.236 kg CO2e/kWh energy from electricity 
Annual operating cost 
$ 

/year 
Calculated from above inputs 
Assumed efficiency 


% 
Estimated based on furnace type and energy auditor opinion. 
Assumed life expectancy 


years 
Estimated based on Dave's experience. 
Current age of furnace 


years 
Name plate data. 
Remaining furnace life 


years 
Calculated from above inputs 
Original cost of furnace 
$ 


Estimated based on furnace type. 
Depreciated value of furnace now 
$ 


Based on straight line depreciation. 
Data on New Furnace

Assumed efficiency 


% 
Based on quotes. 
Annual heating energy consumption 


MJ/year 
From old heat consumption and the two efficiencies 
Annual natural gas consumption 


m3/year 
Based on 37.5 MJ/m3 of gas 
Annual furnace fan electricity consumption 


kWh/year 
Estimated from quotes. 
Annual GHG Emissions 


kg CO2e/year 
Based on 0.04968 kg CO2e/MJ energy from gas and 0.236 kg CO2e/kWh energy from electricity 
Annual operating cost 
$ 

/year 
Calculated from above inputs 
Purchase price for new furnace (installed) 
$ 


From quotes. 
Sales tax rate 


% 
In Ontario, GST applies, but not PST. 
Sales tax 
$ 


Based on sales tax rate above 
Total capital cost 
$ 


Adding the figures above 
Energy audit cost 
$ 


Cost reduced by a $150 rebate available for energy audits. 
Manufacturer rebate 
$ 


From quote. 
OPA rebate 
$ 


For variable speed ECM motor and programmable thermostat. 
Utility rebate 
$ 


From Enbridge, for switching to high efficiency gas and
for the thermostat. 
Federal rebate 
$ 


From NRCan, for high efficiency gas, based on the energy
audit. 
Provincial rebate 
$ 


Matches the NRCan grant based on the audit. 
Total rebates 
$ 


Adding the figures above 
Total cost to the consumer 
$ 


Add capital cost and audit cost and subtract rebates 
Expected recovery of furnace improvement in house sale 
$ 


Realtor association estimates 5080% of the heating system
improvement can be recovered in a subsequent house sale. This calculation
assumes 50% recovery. 

Results

Payback without rebates 


years 
Calculated from the capital cost and the annual energy savings. 
Payback with rebates 


years 
Calculated from the total cost to the consumer and the annual
energy savings. 
Life cycle cost of old furnace 
$ 


Total cost of owning and operating the old furnace, assuming
that if its expected life is shorter than our time horizon we would replace
it with the gas furnace when it dies. 
Life cycle cost of new furnace 
$ 


Total cost of owning and operating the new furnace, assuming
we sell the house at the end of the time horizon and recover 50% of the
added value. 
GHG Emissions Savings 


kg CO2e/year 
Based on above calculations. 