TOTAL COST OF OWNERSHIP GUIDE
FOCUS ON THE TOTAL COST OF OWNERSHIP OF YOUR MOTORS TO REDUCE COSTS AND IMPROVE YOUR ENVIRONMENTAL IMPACT Analysing the Total Cost of Ownership (TCO) of an electric motor looks not only at the initial capital cost but also the lifetime cost of running it. So, as well as the purchase and installation costs, this approach considers the energy consumed along with ongoing maintenance and repair costs. The TCO of a motor will vary based on its type, size and application, but for a typical motor, the purchase cost may only be 2-3% of its TCO. Aside from the cost benefits available by reducing the energy consumed by electric motors, there is the potential for significant environmental benefits as well. According to research from the World Energy Council, electric motors and electric motor-driven systems are estimated to account for almost 50% of all global electricity consumption. If that consumption were to be dropped by just 10%, that could reduce the global demand for electricity generation by 1,425TWh, which is equivalent to the total amount of electricity used by India, the world’s third largest consumer.
Purchase price
Maintenance
CALCULATING TOTAL COST OF OWNERSHIP There is no one-size-fits-all approach to calculating the TCO of a motor, but all costs associated with the lifetime running of a motor need to be factored in, including:
Energy costs
• Purchase price • Installation cost (this may include any operator training required) • Running cost (based on the amount of energy consumed and the hours the motor will be operational for) • Maintenance (this will include routine tasks such as inspection and lubrication, plus periodic maintenance such as bearing replacement)
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