1. What is the DOE ICE Calculator?

The DOE ICE (Department of Energy Incremental Cost Effectiveness) calculator estimates savings from efficiency improvements by comparing old and new values multiplied by a conversion factor. It provides a straightforward method to quantify cost savings from operational improvements.

2. How Does the Calculator Work?

The calculator uses the DOE ICE equation:

Where:

• \( Old \) — Original value or baseline measurement
• \( New \) — Improved value or new measurement
• \( Factor \) — Conversion factor to monetary value ($/unit)

Explanation: The equation calculates the difference between old and new values, then converts this difference to monetary savings using the provided factor.

3. Importance of Savings Calculation

Details: Accurate savings estimation is crucial for evaluating the cost-effectiveness of efficiency improvements, justifying investments, and measuring return on investment for operational changes.

4. Using the Calculator

Tips: Enter the original value, improved value, and conversion factor. All values must be valid positive numbers, with the new value typically being lower than the old value for positive savings.

5. Frequently Asked Questions (FAQ)

Q1: What types of measurements can be used with this calculator?
A: This calculator can be used with any quantifiable metric such as energy consumption (kWh), water usage (gallons), time (hours), or material usage (units).

Q2: How do I determine the appropriate conversion factor?
A: The conversion factor should represent the cost per unit of the measured quantity. For example, $/kWh for electricity or $/gallon for water.

Q3: Can this calculator show negative savings?
A: Yes, if the new value is higher than the old value, the result will show negative savings, indicating increased costs rather than savings.

Q4: What time period does this calculation represent?
A: The calculation represents savings for the same time period as the input measurements. For annual savings, use annual measurements.

Q5: Are there limitations to this calculation method?
A: This method provides a basic estimate and doesn't account for variable rates, time-value of money, or other complex factors that might affect actual savings.