The cost-effectiveness of heat pumps in specific buildings in South Africa

Abstract

Water heating heat pumps are extremely energy efficient and large savings can be realized when they are compared to direct electrical resistance heaters. In spite of the energy efficiency of heat pumps, a large number of residential buildings in South Africa still use electrical heaters to heat water. The reason for this is that heat pumps are considerably more expensive than electrical heaters. Building owners tend to choose the system with the smallest initial cost and do not compare the two systems on the basis of life-cycle cost. It is also difficult to calculate the life-cycle cost of a heat pump because it depends on many factors like climatological conditions and water temperature. In this paper a methodology is developed to calculate the life-cycle cost of a heat pump hot water installation. The model is used to investigate the effect of daily runtime, electricity tariff, hot water consumption and geographical location on the cost-effectiveness of heat pumps. The cost-effectiveness of heat pumps increases with daily run time, water consumption and electricity tariff. Heat pumps are more cost-effective near the coast than in the interior. If sized correctly, heat pumps are more cost-effective than electrical heaters for all major cities in South Africa. The cost-effectiveness of heat pumps for two specific buildings, one a university student hostel in Potchefstroom and the other a hotel in Durban, is also investigated. For both cases it was found that heat pumps are more cost-effective than direct electrical resistance heaters.