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Calculating Savings

Replacing Your Heating System

When you replace your older heating system with a higher efficiency heating system, you will save on your heating costs.  How much you save depends on your current heating system efficiency compared to your replacement efficiency.  The following formula is used to calculate annual energy savings:

Formula

Estimated Annual Heating Cost x ( 1 - ( Current Efficiency / Proposed Efficiency ) ) = Annual Dollar Savings

Variables Described

Estimated Annual Heating Cost = Add twelve months of bills together
Current Heating System Efficiency = See Heating System Efficiency Table.
Proposed Heating System Efficiency = See Heating System Efficiency Table.

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Last Updated: 01/21/2007