National Impact Analysis

The national impact analysis (NIA) assesses the national energy savings (NES) from proposed energy efficiency standards and the net present value (NPV) of the total purchaser benefits.

A key component of the estimates of NES and NPV are the equipment energy efficiencies forecasted over time, for the base case (without the proposed standards) and for each of the standards cases. To project future efficiencies, market-share efficiency data (i.e., data on the distribution of equipment shipments by efficiency) are developed for each equipment class.

The inputs for determining the NPV of the total costs and benefits experienced by purchasers of the considered appliances are: (1) total annual installed cost; (2) total annual savings in operating costs; (3) a discount factor; (4) present value of costs; and (5) present value of savings. EES calculates net savings each year as the difference between the base case and each standards case in terms of the total savings in operating costs and total increases in installed costs. EES calculates savings over the life of each product. EES calculates NPV as the difference between the present value of operating cost savings and the present value of total installed costs.