Thanks for the detailed reply! In my case it would be a replacement of a high efficiency furnace and A/C installed about 10 years ago and still functioning well. I'm confused regarding why the payback time would be reduced by improving insulation. Comments?
Time for a short primer on the steps to designing efficient HVAC systems.
Improving efficiency of HVAC equipment can only have a minor impact on HVAC operating costs, because efficiency gains are often only in the order of 3-5%. Most of Canada's incentives have only impacted HVAC equipment efficiency gains. On the other hand building envelop improvements can have a major impact and reduce energy demand by upwards of 50% or more, yet the manner in which incentives have been applied have hindered major envelope improvements as homeowners favoured the low hanging fruit of HVAC equipment replacements they intended to do anyway.
A building's heating system must be able to provide enough heat to maintain indoor comfort, even during the coldest outdoor temperature expected in a given location, therefore it is imperative to know the average temperature (.typically the lowest 1% to 3% of temperatures) of the coldest days of the year. This temperature is called the outdoor design temperature.
In Canada, the official source for outdoor design temperature data is the National Building Code of Canada (NBCC) and those Provincial Building Codes which rely on data from the NBCC. The NBCC provides a set of climatic data tables that are based on 30-year weather data collected by Environment and Climate Change Canada (ECCC) recorded over a 30-year period.
HVAC professionals use the outdoor design temperature as a basis for calculations designed to properly size heating equipment, such as boilers or furnaces. A heat loss calculation is a process of estimating the amount of heat energy that is lost from a building through the walls, roof, windows, doors, and other components of its envelope. This calculation is essential for determining the appropriate size of heating equipment, to ensure that they are capable of providing adequate heat output to keep the building comfortable even under extreme weather conditions.
The heat loss calculation takes into account factors such as the building's insulation levels, the size and orientation of its windows, the air infiltration rate, and the thermal properties of its materials. By using this information, HVAC professionals can estimate the rate at which heat is lost from the building, measured in units of energy per unit of time (e.g., BTUs per hour).
Example Case
Lets consider an older building from the 1970 that was built with 2x4 construction and insulated at the time of construction, yet had no real air barrier nor have any serious air infiltration mitigation efforts been made to improve the home. That building may typically have an air infiltration rate of 10 air changes per hour at 50 pascals of depressurization. This number estimates how many times in one hour the entire volume of air within a building will be replaced by outside air at 50 pascals of depressurization. Well what does that mean you ask?
50 pascals of depressurization is typically used to simulate worst-case conditions, such as high winds blowing against the building envelope. The pressure difference of 50 pascals is a standard measurement used in building science and is equivalent to approximately 20 miles per hour (32 kilometers per hour) of wind blowing against the building. Those who live in Canada know how often winter storms are blowing in Canada. It should be no surprise then that the number one component of heat loss from most older structures is due to air infiltration.
Mitigating these losses should have been the number one priority of every incentive program since the 1970s. Yet air infiltration mitigation is difficult, and costly and has always been an afterthought forced on the government by experts.
In this case the home's heat loss of 100,000 BTU/ hour can be reduced by over 50% with a major retrofit. New equipment of half the size can then be installed. Smaller equipment also has the benefit of a lower capital cost, lower financing costs, and quicker payback against larger output equipment. OH and let's leverage those savings further... the heat distribution system can be reduced in size and cost, and it often quieter. The overall energy cost savings in this scenario can be over 60% annually. I've done many homes that mirror this example
Oh and the building will now be more comfortable, quieter, etc etc...