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Packaged Boiler New Standard for Commercial Businesses

Beginning 2019, commercial buildings, multi-family homes and schools use boilers to stay warm. To begin with, the U.S. Department of Energy (DOE) finalized a standard for packaged boilers that are used to heat larger property spaces. This new energy efficient standard will save consumers upwards of a billion dollars on heating costs.

Therefore, Commercial HVAC heating systems make up for about 40% of the total electricity bill. With the new standard from the DOE this will help commercial businesses dramatically cut down on utility costs. However, on Dec. 28, 2016 the new standard along with five other standards were set. Although, they will not be effective for another three years. This standard saves 0.27 quadrillion British thermal units of energy once it has taken into effect.

Accordingly, DOE estimates that consumers will save from $200 for a small-boiler, to more than $30,000 for larger oil-based boiler. For smaller boilers payback will occur after 10.1 years where larger boilers will see a payback after just 2.8 years. Due to the lifespan of the unit at approximately 25 years, the commercial property will see a great payback within a reasonable time frame.

Ultimately, the new rule increases the boiler efficiency to a range of 81 to 88 percent versus the current 80 percent. This means that boilers convert more of incoming fuel into useful heat. Since the technology is neutral, manufacturers are able to control individual components to meet the required targets. DOE suggested a list of technologies that will improve efficiency in packaged boilers.

Technology Improvement Tips

  • Jacket insulation
  • Heat exchanger improvements
  • Improved burner technology
  • Combustion air preheaters
  • Oxygen trim systems

For additional information on the new standards provided by DOE read the following article on the final rule; https://energy.gov/sites/prod/files/2016/12/f34/CPB_ECS_Final_Rule.pdf

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