Cost Benefit Analysis for Polymer Electrolyte Fuel Cell Cogeneration

Abstract

Polymer electrolyte fuel cell (PEFC) cogeneration, which supplieswhole space/water heating demand and 70% of electricity demand in ahousehold in Japan, is considered to be a very attractive product fornatural gas facilities to sell, because it is expected to double the naturalgas sales to a household while letting the homeowner save electricitycosts. On the other hand, the initial cost of fuel cell cogeneration equip-ment and installation is considered to be the main obstacles to its popu-larization. In this article, life cycle costs of both a conventional waterheater and PEFC cogeneration was estimated, and it is concluded that aPEFC cogeneration system benefits homeowners, with a payback periodof less than 4 years and system life cycle savings between $1000 and$1500 compared to a conventional water heating system.