Variable frequency drives: the economics?

This data-file aims to capture the economics of variable frequency drives, which precisely adjust the operating speeds of electric motors.

We reviewed 10 case studies and found an average energy saving of 34%, and 15 past projects with an average cost around $250/kW.

Our modelling calculates a 15% IRR installing a VFD at a typical industrial motor. Sensitivity analysis shows how the returns and payback periods vary with power prices and CO2 prices.

Overall, we think economics are excellent and VFD installations will likely accelerate.