Glossary · Energy, bills & ratings
Lifecycle cost
Also called: lifetime cost · total cost of ownership · LCC
The total cost of owning an option over its life — purchase, installation, energy, maintenance and replacement — minus rebates.
What it means
Comparing lifecycle costs shows when a pricier but more efficient system costs less over its working life. Analysts often discount future costs and savings to today's dollars.
Why it matters in an audit
It's the fairest way to compare a heat pump with a furnace, or a heat pump water heater with a standard tank.