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7.A. - Page 69 of 285 <br />2019 Energy Efficiency Ordinance Cost-effectiveness Study <br />Table 6: Incremental Costs - All -Electric Code Compliant Home Compared to a Mixed Fuel <br />Code Compliant Home <br />Measure <br />Incremental Cost (2020 PV$) <br />Incremental Cost (2020 PV$) <br />Single Family' <br />Multifamily' (Per Dwelling Unit) <br />Low High Typical <br />(On -Bill) <br />Typical <br />(TDV) <br />Low <br />High <br />Typical <br />(On -Bill) <br />Typical <br />(TDV) <br />Heat Pump vs Gas Furnace/Split AC <br />($2,770) $620 ($221) <br />Same as Single Family <br />Heat Pump Water Heater vs Gas <br />ankless <br />($1,120) $1,120 $0 <br />Electric vs Gas Clothes Dryer' <br />($428) $820 $0 <br />Electric vs Gas Cooking' <br />$0 $1,800 $0 <br />Electric Service Upgrade <br />$200 $800 $600 <br />$150 $600 $600 <br />In -House Gas Infrastructure <br />($1,670) ($550) ($800) <br />($600) ($150) ($600) <br />Site Gas Infrastructure <br />($25,000) ($900) 1 ($5,750) <br />($11,836) <br />($16,250) ($310) ($3,140)1($6,463) <br />Total First Cost <br />($30,788) $3,710 ($6,171) <br />($12,257) <br />($20,918) $4,500 ($3,361)1($6,684) <br />Present Value of Equipment Replacement Cost $1,266 <br />$1,266 <br />Lifetime Cost Including Replacement & Financing of First ($5,349) <br />Cost <br />($11,872) <br />($2,337) <br />($5,899) <br />'Low and high costs represent the potential range of costs and typical represents the costs used in this analysis and <br />determined to be most representative of the conditions described in this report. Two sets of typical costs are presented, <br />one which is applied in the On -Bill cost effectiveness methodology and another applied in the TDV methodology. <br />'Typical costs assume electric resistance technology. The high range represents higher end induction cooktops and heat <br />pump clothes dryers. Lower cost induction cooktops are available. <br />Typical incremental costs for switching from a mixed fuel design to an all -electric design are based on the <br />following assumptions: <br />Appliances: The Reach Code Team determined that the typical first installed cost for electric appliances is very <br />similar to that for natural gas appliances. This was based on information provided by HVAC contractors, <br />plumbers and builders as well as a review of other studies. After review of various sources, the Reach Code <br />Team concluded that the cost difference between gas and electric resistance options for clothes dryers and <br />stoves is negligible and that the lifetimes of the two technologies are also similar. <br />HVAC: Typical HVAC incremental costs were based on the City of Palo Alto 2019 Title 24 Energy Reach Code <br />Cost-effectiveness Analysis (TRC, 2018) which assumes approximately $200 first cost savings for the heat <br />pump relative to the gas furnace and air conditioner. Table 6 also includes the present value of the <br />incremental replacement costs for the heat pump based on a 15 -year lifetime and a 20 -year lifetime for the <br />gas furnace in the mixed fuel home. <br />DHW: Typical costs for the water heating system were based on equivalent installed first costs for the HPWH <br />and tankless gas water heater. This accounts for slightly higher equipment cost but lower installation labor <br />due to the elimination of the gas flue. Incremental replacement costs for the HPWH are based on a 15 -year <br />lifetime and a 20 -year lifetime for the tankless water heater. <br />For multifamily, less data was available and therefore a range of low and high costs is not provided. The <br />typical first cost for multifamily similarly is expected to be close to the same for the mixed fuel and all - <br />electric designs. However, there are additional considerations with multifamily such as greater complexity <br />for venting of natural gas appliances as well as for locating the HPWH within the conditioned space (all <br />climates except Climate Zones 1, 3, and 5, see Table 2) that may impact the total costs. <br />Electric service upgrade: The study assumes an incremental cost to run 220V service to each appliance of $200 <br />per appliance for single family homes and $150 per appliance per multifamily apartment based on cost <br />estimates from builders and contractors. The Reach Code Team reviewed production builder utility plans for <br />16 © 2019-08-01 <br />321 <br />