Please select from the drop down list State or Province where the project is going to be located. This selection will identify the local utility rates.

Please select from the drop down list the # of weeks that best describes your typical heating season. This is an average value that describes your heating needs and varies depending on the location of the project.

Please select from the drop down list your new boiler capacity (MBH). It is best to use the heating load calculations to determine this value. If unknown, use either an existing boiler nameplate or 25 to 30 BTU/sqft to estimate the heat load for the building.

Note: older homes (more than 50 years) and some northern climates may require 45 - 50 BTU/sqft.

Please select from the drop down list a typical annual average heating load for your area (load profile).
Note: if the load profile is not known, it is recommended to use 20% as a defaul setting. This will accomodate the varying loads during the entire heating season, including off time and lower heating loads.

Example:

Annual operating cost = Design Capacity X Run Hours X Annual Average Heating Load X Utility Rate / Boiler Efficiency
Since the heating system will run most of the time below its design (max.) capacity there is a need to introduce the annual average heating load. This value is typically around 30% to 50% of the max design heating capacity and it depends on the building heating load profile as shown in the following example.

Typical Heat Load Variation during 193 heating days
Heating load between 0 and 20% (10 % average load) = 47 days
Heating load between 20 and 40% (30 % average load) = 65 days
Heating load between 40 and 60% (50 % average load) = 49 days
Heating load between 60 and 80% (70 % average load) = 24 days
Heating load between 80 and 100% (90 % average load) = 8 days
Total = 193 days

Annual average heating load = (10% x 47 + 30% x 65 + 50 x 49 + 70% x 24 + 90% x 8)/193 = 38%

Please note that if the annual operating cost was calculated at 100 % design capacity for the entire heating season, the annual operating cost would be greatly overestimated. If the heating load variation is unknown, 35% average heating load could be used.

Please select from the drop down list efficiency of the existing boiler. If unknown, use the following as a reference:
- boilers older than 25 yrs were probably non-condensing type with efficiencies below 65%.
- boilers between 25 yrs and 15 yrs of age were probably non-condensing type with efficiencies below 75%
- boilers between 15 yrs of age and now that are non-condensing type will have efficiencies below 85%
- newer condensing boilers have efficiencies between 90% and 98%

Additional information (age and efficiency of the boiler) should be available from the boiler nameplate.

This is the End User net selling price (WM Boiler Trade Price x distributor discount + distributor margin + contractor margin). This price is automatically calculated and can be modified directly in this input cell, if needed. This is material net selling price (no installation labor).

If the existing boiler failed, this field can be used to override the boiler Net Price and only show the difference between the standard efficiency replacement boiler and the high efficiency suggested boiler.

This is the End User net selling price (WM Boiler Trade Price x distributor discount + distributor margin + contractor margin). This price is automatically calculated and can be modified directly in this input cell, if needed. This is material net selling price (no installation labor). This cell is identical in value to the corresponding cell on the left side and is locked (cannot be changed by the user).

The Installation and Other Costs can be expressed here as % of the WM Boiler Net Price and are estimated (default value) at 30% of the WM Boiler Net Price. The estimated % value can be modified in the adjacent yellow box, if needed.

Example: WM Boiler Net Price = $10,000
Installation and Other Costs = $3,000

The Installation and Other Costs can be expressed here as % of the WM Boiler Net Price and are estimated (default value) at 30% of the WM Boiler Net Price. The estimated % value can be modified directly in this input cell, if needed.

Example: WM Boiler Net Price = $10,000
Installation and Other Costs = $3,000

This cell is locked but the value can be changed as a percentage on the left side of this page.

The incentives and rebates can be expressed here as % of the WM Boiler Net Price ie. The estimated % value can be modified in the adjacent yellow input box, if needed.

WM Boiler Net Price = $10,000.
Incentives and Rebates are estimated to be 25% of the above WM Boiler Net Price = $10,000 * 0.25 = $2,500 . This number is negative and subtracted from the Boiler Net Price.

The incentives and rebates can be expressed here as % of the WM Boiler Net Price ie. The estimated % value can be modified directly in this input cell, if needed.

WM Boiler Net Price = $10,000.
Incentives and Rebates are estimated to be 25% of the above WM Boiler Net Price = $10,000 * 0.25 = $2,500 . This number is negative and subtracted from the Boiler Net Price.
This cell is locked but the value can be changed as a percentage on the left side of this page.

The default cost of energy is determined by the local utility and it is automatically used to calculate the project savings based on annual average rates for a specific location. The End Users often have rates that are negotiated and different from the average local rates. For this reason, this value can be modified in the adjacent yellow input box to reflect the most currently available data.

This is a calculated value as a sum of WM Net Price, Installation and Other Costs and Incentives and Rebates. This cell is locked and cannot be manually changed.

The present value of future sum of savings $ is calculated using a predetermined discount rate. These savings (cash flows) are discounted at this discount rate, and the higher the discount rate, the lower the present value of the future savings (cash flows). Determining the appropriate discount rate is the key to properly evaluating the present value of the future savings.

The default value for the PV discount rate is 10%. Please feel free to use a more current or appropriate (acceptable by customer) value as it can vary from project to project. This can be modified in the adjacent yellow input box.

Annual Energy Savings (New vs. Existing System)

“The SlimFit LifeCycle value uses 15 years as the default value. This value can be changed to account for a given application, environment, gas type, service and maintenance schedule, and other variables. Weil-McLain does not provide a product warranty for the default LifeCycle value period. The limited warranty statements (including coverage periods) for Weil-McLain products may be viewed at http://www.weil-mclain.com/en/weil-mclain/resources/professional/warranties/.”

Annual Energy Savings are based on the difference between the existing boiler system and new boiler(s).

Same as above but expressed in therms.

LifeCycle Energy Savings expressed in therms.

LifeCycle Energy Savings expressed as dollars ($). These savings are calculated comparing lifecycle costs of proposed new equipment vs. existing boiler less the Total Net Installed Cost.

Simple Payback Period is defined as the number of years required to recover a project’s cost. The regular payback method ignores cash flows beyond the payback period, and it does not consider the time value of money. The payback does, however, provide an indication of a project’s risk and liquidity, because it shows how long the invested capital will be “at risk”.

The Simple Payback is the amount of installed cost divided by the annual cost of energy savings and expressed here as the number of months required to recover the investment.

Example:
Initial investment = $2,000
Annual energy savings = 1,000
Simple payback (months) = ($2,000 / $1,000) * 12 = 24 months

Simple Payback Period is defined as the number of years required to recover a project’s cost. The regular payback method ignores cash flows beyond the payback period, and it does not consider the time value of money. The payback does, however, provide an indication of a project’s risk and liquidity, because it shows how long the invested capital will be “at risk”.

The Simple Payback is the amount of installed cost divided by the annual cost of energy savings.

Example:
Initial investment = $2,000
Annual energy savings = 1,000
Simple payback = $2,000 / $1,000 = 2 years

Present Value (PV) - Present value, also known as present discounted value, is the value of future savings discounted to reflect its current value, as if it existed today. The present value is always less than or equal to the future value because money has interest earning potential which is also described as the time value of money. The time value of money means that a dollar earned today is worth more than if it was earned in the future because it could be invested today and it could earn interest over time.
This cell is calculated and locked. The PV interest rate is 10% by default and can be manually adjusted in the table above. The project could be accepted if the PV value is positive and rejected if the PV is negative.

PV(rate, nper, pmt, [fv], [type])
Where:
PV = Present Value
rate = Discount Rate
nper = Number of Periods (Months)
pmt = Monthly Savings
fv = Future Value of Investment (Optional)
type = Indicator when payments (savings) are realized (0 means end of period, 1 means begining of period)

Net Present Value (NPV) discounts all future savings at the project's cost of capital and then sums up those future cash flows. The project could be accepted if the NPV value is positive and rejected if the NPV is negative.

The Excel NPV formula calculates the sum of the present value (PV) of future cash flows (t=1, t=2, ... t=n), so to obtain the true Net Present Value, you need to subtract the initial investment or in other words, add the initial negative value at t=0 to PV.

Return On Investment (ROI) is measured as the ratio of the savings to the cost of investment. The ROI describes the earning power of investment and is used to measure the efficiency of an investment vs. another opportunity i.e. investing in stocks or bonds. The higher ROI is usually considered a better investment.

ROI = (PV Savings - PV Cost) / PV Cost

PV Savings = PV of Annual Savings over Boiler LifeCycle
PV Cost = Total Net Installed Cost