Commercial economics

Heat pump RTU
vs. gas RTU.

A screening model built around the way a facility manager or CFO evaluates replacement equipment: annual energy and demand, maintenance, capital, incentives, lifecycle value, and the utility-rate crossover.

Facility assumptions

Start with the defaults, then replace every field with project-specific values.

01 Facility and schedule
02 Utility rates
03 System performance
04 Capital and maintenance
Estimated annual savings
—

Screening result

Simple payback—
20-year IRR—
20-year NPV—
CO₂ reduction—
Existing / replacement

Gas heat + conventional RTU cooling

  • Annual heating energy—
  • Annual cooling energy—
  • Demand charges—
  • Annual operating cost—
  • Annual maintenance—
  • Capital cost—
Electrified alternative

Commercial heat pump RTU

  • Annual heating electricity—
  • Annual cooling electricity—
  • Demand charges—
  • Annual operating cost—
  • Annual maintenance—
  • Net capital after incentive—
Demand-charge impact—
Utility incentive—
Heating fuel displacedNatural gas
Decision frameReplacement
Economic break-even

The price ratio is the pivot.

Each threshold holds every other current assumption constant. Use these values to stress-test the project against tariff and fuel-price risk.

Electricity must remain below—
Gas must remain above—
Lifecycle ownership cost
10-year heat pump TCO——
15-year heat pump TCO——
20-year heat pump TCO——

Screening model, not an engineering load calculation. Equivalent full-load hours are inferred from building type and entered operating schedule; validate with interval data, bin-hour modeling, actual tariffs, and vendor submittals. Emissions use 53.06 kg CO₂/MMBtu natural gas and a 0.386 kg CO₂/kWh screening grid factor.