An HVAC installation will likely see a decade plus of service, represents a substantial investment, and the upfront cost often represents only 5% of the overall funding in terms of total cost of ownership over 20 or more years.
Planned Replacement HVAC Energy Retrofit Programs Save You Money
- Avoid costly emergency replacement
- Avoid disrupting business
- Lower replacement costs
- Control the timing of your capital expenditure
- Immediate positive cash flow
Avoid costly emergency replacement:
If your HVAC equipment is nearing its end of life—about 12 to 15 years and if it fails in the middle of the summer, you will likely end up paying a premium to repair or replace the unit. The replacement unit may not have the right features, or even be the right size, because the need to restore air conditioning could force you to make short-term trade-offs.
Avoid Disrupting Business:
New equipment gives you peace of mind. With out-of-date equipment, there’s a constant worry about when it may break down. Unplanned repair expenses negatively impact your profitability and cash flow. In addition to paying more for emergency equipment, you have dissatisfied customers and employees, as well as lost sales.
Lower Replacement Costs:
Replacing multiple units at the same time spreads out fixed costs, such as crane rental and travel time, over several units. Your increased purchasing power may also lower other costs related to equipment purchase and installation.
Control Capital Expenditure
Planning ahead lets you select the best equipment for your needs. When you control the timing of any capital expenditure, you manage business finances more effectively and efficiently.
Immediate positive cash flow:
With leasing, there may be no upfront costs or down payments required. Combined with the lower operating costs of today’s equipment and avoided repair costs, new equipment could provide you with immediate positive cash flow.