Inverter ACs

How much savings can an inverter AC provide? Is it advisable to upgrade to an inverter AC for rental properties? Here's an actual case study.

Facts:

+ Old AC was a 1.5 HP non-inverter Carrier

+ New AC is a 1.5 HP inverter Carrier

+ Cost of New AC Php76,000 (inclusive of restoration expenses)

+ A year's worth of consumption and utility charges were collected before and after the AC replacement.

Before: Electricity consumption averaged 515 (kWh?) while charges averaged Php2,881.33/mo.

After: Electricity consumption averaged 250 (kWh?) while charges averaged Php1,379.11/mo.

Average Monthly Savings: Php1,502.21/mo or 52%.

JPRE: Looking at the data, inverter ACs present huge monetary savings over non-inverter ACs. It would take approximately 4.22 years to recover the replacement cost per 1.5 HP AC unit.

But should lessors upgrade their ACs?

Since tenants pay for their electricity bills, they would be the ones who will benefit from the savings. Thus, lessors should demand higher rent if a unit has inverter-type AC units (ideally to recover the cost). Conversely, tenants should be ready to pay more for units that have inverter ACs.