Hot Water Tank Insulation Proposal
Below is a proposal I wrote to my Condominium Association Board and Members January 27th 2011.
Board and fellow condominium association members,
The following is a proposal for insulating our building’s hot water tanks.
Summary
Insulating the two hot water storage tanks and pipes will cost $3,200, provide more than $1,371 annual energy savings, and provide an annual return on investment of more than 43% (less than 2.33 year payback period). I urge the Board and fellow condominium association members to support this investment; it is rare to find an annual ROI of more than 43%.
Assumptions
- Two AO Smith T-200 water tanks. (Confirmed)
- Boiler requires well ventilated room .
- Ventilation required to constitute combustion in water heater.
- Exposure to external temperatures year round. (See Footnote 1)
- Gas Prices from Peoples Gas website (See Footnote 2)
- Pipe insulation was included in the cost, but not in energy savings.
- Hot water temperature is 130° F (Temperature measured at faucet)
- R Value of insulation is 10.00
- R Value of tank wall is 0.60
Estimate
- Chicago Heating
- Contact: Kevin
- Phone: 773-330-3689
- Web: http://www.chicago-heating-repair.com/
- Cost: $3,200
- Includes: 2 custom tank jackets, 120 ft of pipe insulation, and labor.
Calculations
Footnotes
- Temperature data: http://www.weather.com/weather/wxclimatology/monthly/graph/USIL0225
- I made a request to the Board for a copy of the utility bills on August 23rd 2010. I did not receive a response, therefore, I used cost data based from the Peoples Gas website: http://www.peoplesgasdelivery.com/business/gas_rates.aspx#availableRates
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ED HAYES 