Chapter 1: Project Profile: Pre-Feasibility Study

Pre-Feasibility Study Solar Powered Liquid Desiccant Dehumidifier Air-conditioner
CHAPTER 1: PROJECT PROFILE
1.1 Purpose of the Documents
This document is establish to offer entrepreneur with potential investment
opportunity in setting up a novel air conditioning technology the solar powered liquid
desiccant dehumidifier air-conditioner as an alternative for the conventional
dehumidifier air-conditioner for industrial and commercial establishment. This paper
insights on how the solar powered liquid desiccant dehumidifier offers reduction of
power consumption and a more environmental friendly compared than the typical
dehumidifier or considering retrofitting of the old conventional type. Including the
potential innovation to be feasible on Philippine setting.
Our intention is to describe the solar powered liquid desiccant dehumidifier
evaporative air conditioner. To do this, we must give background in Air conditioning
design, solar power and liquid desiccant technology. After which, we can describe the
concept which consist of a novel air conditioning geometry and a resulting process.
Also on how effective the novel air conditioning system in the Philippines. We do this
by:
Discussing the benefits of desiccant technology and evaporative cooling
Describing the liquid desiccant enhanced solar evaporative A/C process
Comparing the typical unit to the new design
Discussing the energy savings potential
Assessing the risks of introducing this novel concept to the marketplace
Discussing future work to bring this concept to the marketplace
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Discussing the cost of the product
1.2 Project Brief
Today Direct expansion (DX) or refrigeration process is the most common type of
A/C unit, which are more than 100 years old. A/C today is one of the most important
necessity for maintaining efficient living environments. More than 100 years of
continued optimization for cost and efficiency. DX A/C are near their practical limits.
DX A/C have a large contribution to the society. However we must consider
consequences, many refrigerant like R-22 are being destructive to the environment
because it destroys the ozone layer. Other refrigerants release carbon dioxide to the
atmosphere which may result to global warming. Today we are more aware of the risks.
Water is not considered a refrigerant until ASHRAE acknowledge it in 2009. This
technology will use the water as a refrigerant to drive cooling process. An emerging
technology on Air conditioning design uses liquid desiccants to enable water as the
refrigerant in lieu of chlorofluorocarbon-based refrigerants to drive the cooling process.
In high concentration, water from air is adsorb by the desiccant to drive
dehumidification process. The benefits of using this process include low power
consumption, more environmental friendly. The Philippines which is situated at the
tropical receive more of the sunlight from the sun.
The purpose of the study is to address efficient working and living environments.
In developing a novel air conditioner based on principles that are inherently
different than traditional A/C, we must consider the design goals for a new conditioner
to be successful. We first define what an air conditioning system does in building
spaces only.
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Todays A/C systems have:
Maintain a healthy building environment.
In commercial and new residential, A/C provides to maintain indoor
air quality
A/C maintains humidity to prevent mold growth, sick building
syndrome, etc.
Maintain human comfort by providing.
temperature control (heat removal)
Humidity control (water removal)
Some air filtering (particulate removal)
Distribute air throughout the space to encourage thermal uniformity.
In commercial applications, provide make-up air to accommodate exhaust air (EA)
flows. Todays A/C systems have:
Reasonable operations and maintenance (O&M) costs:
Cost of energy to operate
Ease of maintenance (for which the expectation is maintain at
failure)
Reasonable size and first cost
Must fit in an acceptable space
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Must be cost effective compared to minimum efficiency A/C
equipment.
At a minimum, a new air conditioner must be capable of meeting or surpassing

these expectations when designed into an A/C system.
1.3 Opportunity Rationale
A typical Direct Expansion A/C is to be optimized for cost and thermodynamic
efficiency, both of which are nearing their practical limits. The solar powered liquid
desiccant dehumidifier air-conditioner is a sustainable product. It provides a solution
to environmental, economical, and technological issues. This emerging technology has
thermodynamic potential that may overcomes many shortcomings of standard
refrigeration based direct expansion cooling. The Solar powered liquid desiccant
dehumidifier air-conditioner concept has a strong potential to significantly reduce
Philippines energy consumption and provide value to energy companies by reducing
electric power demand and resulting grid strain. Also the product is more
environmental friendly since it can be solar power. When this factors combine the
industrial and commercial establishment is expected to reduce the negative impacts
environmentally, economically and technologically.
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1.3.1 Market Entry Timing
The conventional wisdom is that solar is expensive and will take decades more to
be competitive. Yet last month, the worlds lowest priced solar was bid in Dubai at
P1.345 per kilowatt hour. Other bids have resulted in P1.575 in Mexico, and P1.741 in
the United States by Warren Buffetts Berkshire Hathaway. These are the result of a
90-percent decrease in panel costs over the past decade, low interest rates, and high
levels of sunlightmaking solar in those places significantly cheaper than fossil fuel
in the Philippines, where coal averages at P4, gas at P6, and diesel at P8.
Deutsche Bank has even ranked the Philippines ahead of those countries as one of
the worlds most attractive markets for solar, given its high power rates and sunlight.
So: Why is solar so cheap elsewhere but supposedly not here? Why do some say it
needs subsidies, when now we argue its even cheaper than coal? 1.
Also industries, commercial and residential establishment common necessity is air
conditioning. Air conditioning includes controlling the temperature, pressure, humidity
basically controlling the atmosphere in a confined space. Philippines as we know it is
hot and humid. So it will be the best if you generate the energy coming from the sun to
operate your dehumidifier or air-conditioning unit.
Conclusively it can be said that the Philippines is very much suitable for this kind
of new technology based on this scenario provides conducive opportunities for entry
into this kind of business venture.
1
http://opinion.inquirer.net/95159/the-truth-about-solar-now-cheaper-than
coal#ixzz4NWSXZn3w
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1.4 Key Success Factors/Practical Tips for Success
There are three basic factors that are critical to an organization success.
I) Hands On Experience
Hands-on experiences are a critical part of career exploration and skill
building. It is the best way to develop technical skills that are required for doing
jobs. Soft skills are important as well like creating a good communication and
relation in the organization. Effective management of people is important as well.
It requires balancing constraining forces with liberating forces encourage personal
growth, development and creativity. They manage each person according to what
he or she needs, what motivates them to do their best. This can be complicated but
is essential for success.
II) Marketing Skill
Another critical factor is to develop relevant marketing skills. Customers
are where the money comes from, so in many ways this is the most important
success factor. The purpose of a business is to get and keep customers. Getting
customers involves marketing indeed this success factor includes all kinds of
marketing and sales. The key to successful customer relations is to give them what
they need, not just what you want to sell. Effective sales and marketing begins with
asking existing and potential customers what they need, what problem they want
solved or deficiency filled. By keeping in touch with customers and asking these
questions often, youll do a better job of developing customer loyalty and keeping
competitors away. In the broadest sense customer relations can be considered the
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organizations relationships with the external world. It involves tracking competitor
actions, analyzing changes in the market environment, and adapting according.
I) Technical Skills
Being technically competitive is the third critical factor for successful
business. Effective operations ensure that customers get exactly what they want at
the right time, the right price and the right quality. Thus effective operations
management focuses on what is called cycle time producing a product or service
from start to finish, cost control, and quality control (which requires some form of
measurement). Finances, facilities and equipment are the big 3 physical resources.
If you dont have enough money, you cant start or sustain an organization. And
one of the biggest expenses is providing adequate facilities and equipment for
people to work in and with. Strategic focus is largely externally oriented, operations
largely internally oriented. Both need to be totally in sync with each other not
something that happens automatically but rather requiring constant effort.
1.5 Proposed Business Legal Status
Legal status of business tends to play an important role in any setup, the proposed
product the solar powered liquid desiccant dehumidifier air-conditioner is assumed to
operate as a Limited Liability Partnership (LCC) An LLP Partnership is a hybrid of a
partnership and limited company, each partners liability is limited to the money that they
have put into the business and the amount of personal guarantees they have given to raise
any finance for the business. We tend to get products from other suppliers of the product
specifically in the North America. As the business grow it will need to extend its line of
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products and services in that case the business may seek partnerships that will improve the
business significantly.
1.6 Project Investment
This section will provide the total cost of the project.
Item Cost (PHP)
Construction-Office Store 2,000,000
Construction-Service Station 2,000,000
Masonry Work 1,000,000
Mechanical Repairs Equipment 1,000.000
Cleaning Equipment 700,000
Hoisting Equipment 500,000
Construction Equipment 6,000,000
Chemicals Purchases 100,000
Spare part Purchases 2,000,000
Electrical Repairs Equipment 500,000
Lubrication Purchases 75,000
Advance Rent and Deposit 750,000
Working Capital 2,000,000
Pre-operating cost 200,000
Office Furniture and Equipment 300,000
Total Cost 19,125,000
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The Solar powered Liquid Desiccant Dehumidifier is constructed with different
labeled product. The business tends to get the products that are needed to construct the
dehumidifier from other suppliers of the product specifically in the North America.
1.7. Proposed Product Mix
A HVACR servicing shop the specialize on Solar powered Liquid Desiccant
Dehumidifier installing and maintenance is assumed to provide six major services and
products
I) Mechanical Repairs and Maintenance
II) Electrical Repairs and Maintenance
III) Cleaning Maintenance
IV) Installing and commissioning of the product
V) Automation and Instrumentation maintenance
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The following table presents an overview of the main services proposed to be offered
under the first 2 main categories identified above:
Installation Maintenance
Material replacement Cleaning Services
Product Installation Mechanical Components Repairs
Providing Heavy Equipment Electrical/Instrumentation
Component Repair
Providing the right chemicals and Automation Software Maintenance
lubricant
1.7.1 Installation Services
It is assumed that industrial or commercial establishments will subscribe to properly
install the Solar powered Liquid Desiccant Dehumidifier Air-conditioner. These are
divided by four following types of services:
I) Material Replacement
Since the material or devices that are installed on the dehumidifier
have a particular life span. It must be replace properly by an authorized
technician. The replacement must be on correct specification to avoid
certain problems. The materials replacement is usually done on a certain
amount of time. Some products are needed to replace annually and some are
to be replace every 5 years. They are materials that are needed to replace
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immediately due to it can further damage the product or the product
becomes non-operatable.
II) Product Installation
The installation must be done correctly to optimize time and work
efficiency. The company provides technical experts to install the product
properly. From installing of fan, rotor, dehumidifier wheel, solar panels,
heat exchangers, the process instrumentation device. Installation of
automation software is also provided so that the product will work properly.
Typical installation may consume 3 12 months.
III) Providing Heavy Equipment
Hoisting material are needed to install the product properly specially
when working on high elevation. The equipment must be state of the art to
ensure the safety of the workers and also the products installed.
IV) Providing the right chemicals and lubricant
The dehumidifier must work properly to achieve its optimum
efficiency. So that it needed the right chemicals to run smoothly. The liquid
desiccant dehumidifier uses a lithium chloride which is an adsorbent
material. That is used to dehumidify and clean the air. Lubrication is also
an important factor for maintaining its optimum capacity. Lubricant must
be right in specification so that the product will work properly.
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1.7.2 Maintenance Services
The product deteriorate over time. In order to maximize the effectiveness of the
Solar powered Liquid Desiccant Dehumidifier Air-conditioner it must be maintained
properly by an authorized person.
I) Cleaning Services
By using high pressure water cleaner are being used to clean the
insides of the dehumidifier. The pipes must be free of impurities that may
clogged it. Replacing filters must be done properly to remove impurities
that enter the dehumidifier. Refilling of lithium chloride must be done by
authorized technician to avoid problems.
II) Mechanical Component Repairs
Components have different lifespan so that it undergoes on a
schedule maintenance it is where the product are being repair or replaced.
For examples repairing the actuators, bearings, belts and etc. to achieve
optimum efficiency of the dehumidifier.
III) Electrical Component Repairs
As well as mechanical components the electrical components must
be always maintain properly. The instrumentation and electrical devices
must be maintain properly to control the dehumidifier well.
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IV) Automation services maintenance
To improve the system more effectively process automation is used.
A typical control system used in industries are Programmable logic
controller or PLC. It composed of different kinds of sensors. Its function is
to measure the temperature, pressure, fluid level, close and opens valves and
etc.
1.8 Recommended Project Parameters
Capacity Human Resources Equipment Location
10-15 Servicing / 8 (Management) Local / US / High Income

Month 23 (Technical Staff) European / Chinese Locality
Financial Summary
Project Cost IRR NPV Payback (WACC)
Period
19,125,000php 33% 12,966,750php 42 months 17.5%
1.9 Proposed Location
The HVACR Servicing business is dependent on the location of its setup. HVACR
Servicing are usually located near industrial economic zones or in the heart of the city. Its
primary costumer are manufacturing industries, commercial establishment and sometimes
residential. The main factors to consider for deciding on the location are:
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Anticipated Source of Business:
If the owner of the HVACR Servicing has several contacts, referrals and
good connection to the customers, the establishment can be setup off-road.
However, if the owner needs more customers he needs to locate his business
near roads or near the customers specifically in industrial economic zone or
commercial districts. Near the main road location provides higher rent than off
road location. This becomes a critical factory for your business location.
Existing Competition:
One of the important factor when establishing a business is considering
competition. High concentration of similar types of HVACR Servicing business
in a certain location can give a competition. They tend to lower their prices,
discounts and offer special service. It advisable to avoid setting your business
location near well-known similar business establishment. The owner must have
several contacts and referral.
Quick Accessibility to Parts Market:
The location of the business must be within close proximity to the spare
parts market to ensure availability of the desired parts. It is important for
maintain a spare part inventory. For example there is an emergency you can
quickly gather the parts that you needed if you are near the spare part market
time and transportation cost is reduced. Therefore it is crucial for the business
location to be near the spare part market.
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1.10 Key Success Factors/Practical Tips for Success
The primary objective for an HVACR Servicing Business is to offer high quality,
cost effective and time efficient servicing. The location is crucial for setting up a business
the following factors are needed for proposed setup a successful business venture and
continuous excellence:
Referral Network of Customers Growth:
Customers are where the money comes from, so in many ways this is the
most important success factor. The purpose of a business is to get and keep
customers. Getting customers involves marketing indeed this success factor
includes all kinds of marketing and sales. The key to successful customer
relations is to give them what they need, not just what you want to sell. It is the
main factor to attract and maintain loyal customer. The workers shall be train
to be responsible for customer relation. This would help maintaining the
business to continue in the long run.
Convenient Service Facilities and Shop keeping:
The Shop must be appealing to attract customers. Maintaining clean and
healthy environment will also help the workers. The equipment and machine
used are properly maintain so it would do the job well when it is operating.
Providing quick and high quality servicing that will attracts loyal customers.
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HVACR Parts Inventory
Maintaining spare parts adequate inventory based on experience and
business needs give the shop a fast service and avoid any inconvenience caused
to the customer. It also provide a hassle free transaction to the customer.
However the owner should carefully manage its spare parts inventory based on
their working capital to continue in their business. Usually they provide the
most common spare parts in their inventory because it is the most replaced part
or used part. Less common brand are usually made available on call basis.
Specialized Skills
This kind of HVACR servicing business is expertise on setting up a solar
powered liquid desiccant dehumidifier air conditioner for industrial and
commercial application. Since it is new to the Philippines this business provides
its product maintenance due to its the business specialty. The technician must
be knowledgeable of this new technology. They must know the procedure of
installing and maintaining it in the proper condition. This skill will attract the
customer if the new technology air conditioning system is explain how it will
help the environment in also its reduce energy consumption due to harnessing
the energy of the sun. Also having a liquid desiccant instead of a solid desiccant.
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Skilled and Experienced Manpower
Skill and Experienced Manpower is one of the primary factor for the
business to run in a long time. The knowledge and the experience of the owner
is not sufficient if the manpower is not skill enough. Since the business
primarily work on HVACR. They should have a HVACR technical expertise.
For example installing the dehumidifier needs an expert for designing. Effective
management of people is important as well. It requires balancing constraining
forces with liberating forces encourage personal growth, development and
creativity.
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CHAPTER 2: PROCESS FLOW
The a HVACR servicing shop the specialize on Solar powered Liquid
Desiccant Dehumidifier installing and maintenance provides Mechanical,
Automation, Instrumentation Repair and Maintenance, Cleaning Maintenance,
Installing of the product and proper Maintenance of equipment and materials of the
product.
1.5 Mechanical Services:
1.6
Product /HVACR unit Time/Cost
that needs mechanical Job Order
repair services Estimate
Delivery to the Customer Test Trial Repair/ Replacement
The above diagram illustrate the basic process flow for mechanical
maintenance and repairs. The mechanical services include repairing of fans,
blowers, pipes, adjusting belt, gear box and any mechanical devices during
preventive, breakdown, corrective or schedule maintenance. It will be done an
expert probably a plant mechanic or an HVAC specialist that will be manage by a
mechanical or civil engineer. The customer comes with a job order prepared it
includes what are the mechanical problems, face by the customer. A technical
expertise person provides the customer an estimation of the time and cost of the
maintenance and repair. And upon an agreement between the customer and the
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management the project will start at a certain time. After the project is done it will
be tested if the project repaired is operating properly. The customer will be there to
see the test trial visually. If the customer is satisfy with the repairs and maintenance
it will be job well done.
1.7 Electrical Services:
1.8
that needs Electrical Job Order
repair services Estimate
The above diagram illustrate the basic process flow for electrical
maintenance and repairs. The electrical services include repairing or replacing of
junction box, panel board, control panel and any electrical devices during
preventive, breakdown, corrective or schedule maintenance. It will be done an
expert probably a registered master electrician or an HVAC specialist that will be
manage by a mechanical or electrical engineer. The customer comes with a job
order prepared it includes what are the electrical problems, face by the customer. A
technical expertise person provides the customer an estimation of the time and cost
of the maintenance and repair. And upon an agreement between the customer and
the management the project will start at a certain time. After the project is done it
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will be tested if the project repaired is operating properly. The customer will be
there to see the test trial visually. If the customer is satisfy with the repairs and
maintenance it will be job well done.
1.9 Cleaning Services:

that needs cleaning Job Order
services Estimate
Cleaning / Replacement
Delivery to the Customer Test Trial of filters, liquid
desiccant
The above diagram shows the process flow of cleaning services. Eventually
the unit needs to be clean in a certain time to achieve its optimum efficiency. As
usual the customer comes with a job order for cleaning the unit. Refilling of the
liquid desiccant, replacing of filters, declogging of pipes are one of the several
cleaning services to be done. Technical expertise personnel will handle the project
to do the job correctly. Test trial is being done to ensure the performance and
integrity of the unit. If the customer is satisfy with the repairs and maintenance it
will be job well done.
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2.6 Installing and commissioning of the product:
Awarding of the
Contract from the Preparation and Planning Installation of the unit
customer and other paper
works
Operational Testing Pre-commissioning Completion verification
Performance and
Start Up and Initial Acceptance testing
operation Post Commissioning
The illustration above shows the basic process of the installation and
commissioning of the product. From awarding of the contract to the project to post
commissioning this steps are important to ensure that it well operate properly.
Installing the unit takes time. After that the completion verification takes place it is
where the turnover of management system, operating manual and procedure check.
Inspecting of the unit is important as well to avoid any problems regarding the unit.
Then it undergoes to performance and startup check. Preparation and
Appointment of Commissioning planning Manager or Lead Commissioning
Engineer Mechanical Appointment of Commissioning Team Completion
Members and Support Staff and Integrity checking Training Pre-commissioning
& Information Compilation Operational Testing Safety and Risk Assessment
Start Up & Initial Commissioning Strategy Operation Development; Procedures
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and Checklist Performance and Development Acceptance testing Post
Commissioning Post Commissioning Detailed Plan and Budget Preparation. The
procedure must be done right according to the time table. Time phasing
construction and commissioning activities Time phasing the commissioning of the
various parts of the plant relative to each other Relationships and timings
determining when various systems need to be available: Electrical, Steam, Water,
Instrumentation Sequencing of the overall plant startup and shutdown to ensure we
do not create unsafe conditions Initial startup Process Control and Shutdown
Performance testing. The last step it is when the unit is properly operating based on
the preceding steps it is provisional for acceptance certificate.
1.10 Maintenance of equipment and materials of the product
Time/Cost
Job Order
Estimate
The above diagram illustrate the basic process flow for maintenance and
repairs. It will be done an expert probably a registered master electrician or an
HVAC specialist that will be manage by an engineer. Every material or device have
certain lifespan example lubrication is done every 3 months, replacing actuators
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and etc. The unit is subjective to preventive, corrective and schedule maintenance
since the product is new this business have the technical expertise to do the job
properly. The process is almost the same to mechanical and electrical maintenance.
2.8 Automation and Instrumentation maintenance
Time/Cost
Job Order
Estimate
Delivery to the Customer Test Trial Repair / Replacement
The above diagram illustrate the basic process flow for Automation and
Instrumentation maintenance. Calibrating the system is done in a certain period of time.
Calibrating of devices like temperature and pressure sensors. Checking of actuators,
pneumatics, and hydraulics inside the system. Also conducting maintenance to the control
system is important. If the customers need changes in operation of the unit the HVACR
servicing specialize in that unit is the one knowledgeable to do the job correctly.
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1.11 Discussion of the new product
Figure 1 (www.nrel.gov/)
The illustration above is a basic representation of solar powered liquid desiccant
dehumidifier air conditioning of National Renewable Energy Laboratory (NREL). There
are 3 basic option on setting up the dehumidifier.
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Figure 2
(http://marine-services-singapore.blogspot.com/2015/02/solar-energized-
liquid-desiccant-air.html)
The illustration above is a basic representation of solar powered liquid desiccant
dehumidifier air conditioning process flow.
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2.8.1 Cost Model
This is cost model is based on the study of NREL
Costs for the DEVap A/C are uncertain, but several similar products can be used to
estimate. Costs from the Coolerado heat and mass exchanger are used to estimate costs for
the DEVap conditioner; a cost estimate from AILR is used for the regenerator. The
Coolerado is estimated to contain 205 ft2 of heat exchanger area per cooling core, and we
estimate the manufacturing cost to be $0.68/ft2We assume an additional cost of $1.02/ft2
($0.93 for the membrane, $0.09 for attaching the membrane) for the first section, which
results in a total cost of $1119/ton. The other cost assumptions are listed in Appendix A.7.
These estimates are predicated on costs of the system as built in similar fashion as the
Coolerado Cooler and at modest entry-level volumes. We do not attempt to estimate future
improvements in designs and cost that would allow the system to approach the volumes
of the DX A/C market, and thus reduce costs further.
Figure 3 DeVap Retail Cost Estimate
Figure 4 D/X Retail Cost Estimate
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2.8.2 Commercial Cost Performance
This is cost model is based on the study of NREL
Figure 5 and 6 show the results of the economic analysis for the payback return rate
or IRR for each city. Each rate is based on a 15-year product lifetime for each system.
Rates for electricity and gas are monthly averages. Time-of-use electricity rates and peak
reduction credit are not taken into account. Because A/C power draw drives commercial
peak consumption, inclusion of these factors will increase electricity costs. This would
inevitably improve the economics of the DEVap A/C.
Figure 5 Economic Analysis for Houston
Figure 6 Economic Analysis for Phoenix
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Based on the details provided by NREL the solar powered liquid desiccant dehumidifier is
an efficient alternative for the typical direct expansion refrigeration system. It is also
environmental friendly because it harness suns energy through the use of solar panels. 2
2
www.nrel.gov/docs
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CHAPTER 3: MACHINE & EQUIPMENT
3.1. Solar Panel
Solar panels are quite possibly the future of home-energy production. Solar
panels are somewhat costly to buy, but once you've purchased the panels and installed
them, the money you will save in the long run will become exponentially greater as energy
prices increase.
The cost of the actual system probably wont vary that much from place to place,
but there are a lot of options, and there are different incentives from place to place. If you
were to piece it all out, probably around 60% of the cost is just the hardware. And believe
me, the labor cost was worth it! You should have seen all the equipment and people it took
to get the job done. They had a machine that lifted the panels and tons of bricks onto the
roof, then they all had to be carried over and installed. Plus the framework for holding the
panels had to be built on the roof, and all the electrical work had to be done
If you are considering a solar electric system, you need to first answer these questions:
Does my home have clear and unobstructed access to sunlight for most or all of
the day, throughout the year?
Do I have a large enough roof or area to accommodate the system I need?
Does my community have any covenants in place that prohibit solar panels?
Is it worth the investment?
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If you have enough sunlight, space, and money to invest in a solar electric system, and if
there are no legal issues, you are ready to go. But before you go off and buy just any system,
consider these three things:
1. THE RIGHT CO NTRAC TO R MATT ERS
Your solar electric system or Photovoltaic (PV) system needs to be sized, sited,
installed, and maintained correctly to achieve optimal performance. It is best to
have a professional solar contractor install your system. Make sure your contractor
is properly licensed or certified to work with PV systems, and check to see how
many years of experience the company has. If you are interested in an off-grid
system, be sure company representatives have previously installed a stand-alone
system. (The same is true for on-grid systems as well.)
2. SIZE MATTERS
When installing a solar electric system, you'll have to figure out how big the system
needs to be to meet your electricity needs. First, make sure you are already being
as energy-efficient as possible; this means less energy needs to be generated and
lower monthly bills! Next, think about how much energy you need your PV system
to produce. The more energy you need, the larger your system could be.
PV systems rated between 1 and 5 kilowatts are generally sufficient to meet the
needs of most home and small business owners.
3. ORIENTATIO N AND T ILT MATTE RS
PV modules need to be oriented to gather the maximum amount of daily and
seasonal sunlight. Typically in the northern hemisphere, this means the optimal
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placement is true south. However, you can face your PV modules up to 45 degrees
east or west of true south without significantly decreasing performance. If you are
planning to mount your modules on the roof, consider roof angle and condition,
landscape features that could inhibit direct sunlight, and local weather conditions
that may affect electricity production.
3.2. Air-conditioning Coil Cleaner
Use air conditioning coil cleaner to indoor evaporator and outdoor condensing unit
if your air conditioner is not as cool as before. If you have been taking out the filters of
your room air conditioner regularly for washing, chances are you may not need to use coil
cleaner to get rid of the dirt and dust. However, you may one day need to clean the coils
when you see dirt and dust stuck to the fins and coils of your unit.
3.3 HVAC Instruments
HVAC instruments are required to measure the pressure and temperature of various
sections of an air conditioning system. Typical pressure gauges are Vacuum Gauges, High
Pressure Gauges and Compound Gauges. Clamp-on ammeter voltmeter is another useful
device to troubleshoot the electrical circuit of an air conditioner.
Thermometers with temperature range that are suitable for the location to be
measured such as suction line, liquid line or air discharge temperature are basic tools that
technicians should have.
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3.4. Troubleshooting Heat Pumps
In troubleshooting heat pumps which are not working properly, it is important to
know the main components that make up the equipment. The electrical and electronic parts
that control the equipment are the power supply, wires and printed circuit boards.
The mechanical parts are the evaporator, condenser, compressor, and meter device
and the 4-way valve.
3.5. Dehumidifier
Dehumidifier is an equipment used to decrease the relative humidity of a room to
ensure that the moist space water molecules are reduced for the comfort of the occupants.
The relative humidity (RH) shows the percentage of moisture in the air and different room
temperature can hold different amount of moisture.
Air that is high in RH will cause sweating and little evaporation and hence
discomfort to the occupants. It is also caused the growth of mould and mildew which cause
health risks to the people in the house.
Besides that, the humid environment is ideal for cockroaches, dust mites and moths
to thrive. The dampness also creates an unpleasant smell in the room. A study shows that
the typical RH that is comfortable to the human body is between 30% - 50% RH. Hence,
using proper dehumidification equipment is crucial to ensure a healthy and comfortable
environment in the homes or offices.
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CHAPTER 4: LAND & BUILDING REQUIREMENT
4.1 Land Requirement
The proposed Solar Powered Liquid Dessicant Dehumidifier Manufacturing
Company setup is assumed to operate in 1000 sq. yards that allows ample space for the
manufacturing and producing of proposed units and also storage of materials like solar
panels and etc. And also for general parking services for walk-in customers.
4.2. Covered Area Requirement
The manufacturing is assumed to be totally covered with around 85% of the total
are catering to technical works and the other 10% is for the stock room of the solar panels
and the remaining 5% for General Office and Stores. It is recommended that minimum
space be utilized for office and store setup to allow maximum number of customers within
the company vicinity.
Assembly of Units 500 Sq. Yards.
Finishing & Quality Assurance 150 Sq. Yards.
Storage of Materials 100 Sq. Yards.
Maintenance & Repair Services 200 Sq. Yards
Office 50 Sq. Yards.
4.3. Recommended Mode
The proposed land will be acquired on an owned land of the heads and owners of
the company.
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4.4. Office Furniture & Equipment
A total of is required for purchase of office furniture and related equipment. The
following table gives an assumed breakup.
4.5. Suitable Location
OFFICE FURNITURE
Item Number Estimated Cost (Pesos)
Table & Chair Set (Owners) 3 10000
Table & Chair Set 4 12000

(Technicians & Supervisors)
Air Conditioner (Split Unit) 2 72000
Waiting Chairs 8 5000
Sofa Set for Customers 1 3000
Curtains/Interior Dcor - 2000
Total 104,000
The Office Furniture & Equipment will be depreciated at the rate of 10% per
annum according to the diminishing balance method for the projected period.
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4.5 Suitable Location
The proposed location for a Solar Powered Liquid Dessicant Dehumidifier
considering the factor mentioned earlier would be medium-high income locality area where
almost all of the nearby residences are expected to have at least one unit of dehumidifier.
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CHAPTER 5: HUMAN RESOURCE REQUIREMENT
The Solar Powered Liquid Desiccant Dehumidifier is a labor industry where the
labor cost establishes a considerable part of the cost of sales. The following table gives a
breakup of the total administrative manpower required to operate the proposed setup.
GENERAL MANAGEMENT
Designation Number Monthly Salary
Owner 3 -
Accountant 2 36,000 PHP
Purchaser 1 13,000 PHP
Office Assistant 2 24,000 PHP
Total: 8 73,000 PHP
Considering the size of this proposal for an establishment, it can be assumed that
the owners could be managing the overall affairs of the business. An accountant is needed
in this business to process and check bills, invoices, job orders etc. The accountant must
be in the office in the time that will be given to him/her or whenever he/she is needed.
The purchaser will be the one who is responsible of buying the parts that are needed
for the business and other purchase when needed. The office assistant would be responsible
36 | P a g e
for handling costumers and complaints, following-up on bills and managing all activities
related to the business.
The following table gives the details for the proposed technical labor that forms the
integral part of the cost of sales:
JOB/DUTY ALLOCATION
Designation/Type Number Salary
Mechanical Engineer 2 40,000 PHP
Electrical Engineer 2 42,000 PHP
Civil Engineer 1 18,000 PHP
UNIT INSTALLERS
Mechanic 3 45,000 PHP
Electrician 2 32,000 PHP
Instrumentation expert 1 17,000 PHP
Aircon technician /skilled 3 42,000 PHP
helpers
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REPAIRS & MAINTENANCE
Mechanic 4 60,000 PHP
Electrician 2 32,000 PHP
Instrumentation expert 1 17,000 PHP
Aircon technician /skilled 3 42,000 PHP
helpers
TOTAL 24 387,000 PHP
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CHAPTER 6: FINANCIAL ANALYSIS & KEY ASSUMPTIONS
This project cost estimates for the proposed business have been formulated on the
basis of discussions with relevant people including stakeholders and experts. The cost
projections cover the cost of land, building, inventory, equipment including the furniture
etc. The specific assumptions relating to individual cost components are given as under:
6.1 Revenue & Cost Projections
Revenue projections for out proposed business includes sale streams from two main
sources i.e. Installation of units and Repairing/Troubleshooting units. The sales are
expected to grow at a real rate of 12% per annum which reflects on the anticipated growth
of number of families or industries wanting to have air conditioning units hence the
business is expected to increase based on volume rather than increased service charges
6.1.1 Gross Margins
The following table gives the Gross Margins for the proposed services
SERVICE GROSS MARGIN
Mechanical Repair and Replacement 29 %
Electrical Repair and Replacement 29 %
Cleaning Maintenance 28%
Installation Services 35 %
Automation Repair and Replacement 29 %
Overall 30 %
39 | P a g e
6.1.2 Margins on Parts
The HVACR Servicing Shop being service oriented setup charges a margin of each
products uses and services it provides. The diagram below represent the breakdown of the
margin.
SERVICE MARGIN
Spare Parts 10 %
Lubricants 12 %
It is assumed the cost of parts and lubricants is expected to increase at rge rate of
10 % yearly for projected period.
6.2 Rent Cost
The rent for the assumed premises will be 100,000 PHP per month. It is assumed
that 600,000 PHP will be given in advance before possession of premises. It will include 3
months deposit and 3 months advance rent. The rent will be payable on a monthly basis
and is expected to increase at the rate of 10% per annum.
40 | P a g e
6.3 Construction Cost
The office of the proposed business involves construction cost which translates into
two main components as follows:
Office construction which involves a two storey building in which the ground floor
can be used as a storage for the parts and chemicals that will be used in the business
and the second floor will be the office where customers can speak with the owners
regarding the business. The construction probably cost from 1,000,000-2,000,000
PHP
The second construction would be in the ground floor where the space will be
divided into two, for the parts of the units and the other for the chemicals that will
be used in installation of the units.
6.4 Utilities Requirements
The following table presents the assumed breakup of utilities on a monthly basis:
UTILITY MONTHLY CHARGES (PHP)
Electricity 12,000
Water 10,000
Telephone 2,500
Entertainment 1,000
Total: 25,500
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It is assumed that the utilities expenses will increase 10% every year.
6.5 Depreciation on Building & Equipment
Depreciation of the building, technical equipment, alignment & balancing
equipment and office furniture & fixtures is assumed to be at the rate of 10% per annum
based on the diminishing balance method for the projected period. It has been assumed that
the equipment will be replaced after every three years at a cost which will be 10% greater
than the acquisition of the previous equipment.
6.6 Labor Allocation Costs
The technical labor costs will come from the profit of the business and will be given
to each employee depending on their position in the business.
It depends on how is worst is the problem and what material or devices that are
needed to replace.
The mechanic labor cost about 600-800php/day upon servicing.
The electrician labor cost about 700-900php/day upon servicing.
The automation expert labor cost about 800-900php/day upon servicing.
The aircon technician labor cost about 500-700php/day upon servicing.
42 | P a g e
6.7 Working Capital & Pre Operating Costs
It is estimated that an additional amount of approximately 1,300,000 PHP will be
required as cash in hand to meet the working capital requirements/contingency cash for the
initial stages.
Item 3 months cost (PHP)
Utilities 76,500
Salaries 1,161,000
Total: 1,237,500
6.8 Account Receivables
A collection period of 45 days is assumed for sales. Further provision for bad debts
has been assumed equivalent to 10% of Gross receivables.
6.9 Traveling & Miscellaneous Office Expenses
A monthly figure of 5,000 PHP; 200 PHP per day is assumed to be incurred for
traveling expenses and office purchases which are expected to increase at the rate of 10%
per annum.
43 | P a g e
6.10 Financial Charges
It is assumed that long-term financing for 5 years will be obtained in order to
finance the business setup which would mainly include the construction of building,
purchase of equipment etc.
6.11 Taxation
Unlike a corporation, LLCs are not taxed as a separate business entity. Instead, all
profits and losses "pass through" the business to each member of the LLC. LLC members
report profits and losses on their personal federal tax returns, just like the owners of a
partnership.
6.12 Cost of capital
The cost of capital is explained in the table below:
Particulars Rates
Required return of equity 20 %
Cost of finance 15 %
Weighted average cost of capital 17.5%
The weighted average cost of capital is based 50:50 debt/equity ratio.
44 | P a g e
6.13 Owner Withdrawal
An LLC combines the personal asset protection witnessed in a corporation with the
simplicity of a partnership. Owners of a limited liability company are referred to as
members. When members of the business withdraw money from the business, it decreases
the equity that members have in the business. Equity represents the claim members make
on the companys assets and indicates the net worth of the LLC. Also, withdrawing money
from an LLC causes a reduction in the companys assets. 3. It is assumed that amount would
depend on the availability and sustainability of business funds for its future growth.
3
http://smallbusiness.chron.com/account-entry-owner-withdrawal-llc-22669.html
45 | P a g e
6.14 Key Assumptions
Item Assumption(s)
Sales Increase 15% per year
Increase in Cost of Sales 10% per year
Increase in Staff Salaries 10% per year
Increase in Utilities (Electricity/Water/Gas) 10% per year
Increase in Office Expenses 10% per year
Debt/Equity Ratio 50:50
Depreciation
Building & Masonry Work 11% per annum (Diminishing Balance)
Technical Equipment 11% per annum (Diminishing Balance)
Office Furniture & Equipment 11% per annum (Diminishing Balance)
Solar Panel Installation 3% per year
Dehumidifier Installation 3% per year
Maintenance of Units 18% of cost price
Tax Rate Income Tax on Salaried Individuals
46 | P a g e
CONCLUSION
Bringing innovative air conditioning technology like solar desiccant dehumidifier
air conditioner is something new to the Philippines. Since the Philippines have the right
condition for setting up a solar powered air-conditioner. It is feasible for bring such product
to industries and commercial establishments. The product will also help reduce negative
impacts on the society, environment and to the economy. Setting up an HVACR service
center that install this product will get the privilege for bringing clean energy device that
will have a positive impact on the Philippines. If you explain how it will help to their
company or establishment you can get good investments.
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REFERENCE
http://smallbusiness.chron.com/account-entry-owner-withdrawal-llc-22669.html
www.nrel.gov/docs
http://marine-services-singapore.blogspot.com/2015/02/solar-energized-liquid-
desiccant-air.html
http://opinion.inquirer.net/95159/the-truth-about-solar-now-cheaper-than
coal#ixzz4NWSXZn3w
www.solarphilippines.ph
ASHRAE Manuals
www.instructables.com/id/Solar-powered-air-conditioning-unit/
https://www.ashrae.org/File%20Library/docLib/Public/2004322135813_326.pdf
www.kathabar.com/liquid-desiccant/principles-liquid-desiccant
www.sciencedirect.com/science/article/pii/S1364032115014252
http://www.airconditioning-systems.com/air-conditioner-maintenance.html
http://www.airconditioning-and-heating.com/how-acs-work/
48 | P a g e

Chapter 1: Project Profile: Pre-Feasibility Study

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Pre-Feasibility Study Solar Powered Liquid Desiccant Dehumidifier Air-conditioner

CHAPTER 1: PROJECT PROFILE

1.1 Purpose of the Documents

This document is establish to offer entrepreneur with potential investment

desiccant dehumidifier air-conditioner as an alternative for the conventional

dehumidifier air-conditioner for industrial and commercial establishment. This paper

dehumidifier or considering retrofitting of the old conventional type. Including the

potential innovation to be feasible on Philippine setting.

Our intention is to describe the solar powered liquid desiccant dehumidifier

evaporative air conditioner. To do this, we must give background in Air conditioning

Discussing the benefits of desiccant technology and evaporative cooling

Describing the liquid desiccant enhanced solar evaporative A/C process

Comparing the typical unit to the new design

Discussing the energy savings potential

Assessing the risks of introducing this novel concept to the marketplace

Discussing future work to bring this concept to the marketplace

Discussing the cost of the product

1.2 Project Brief

DX A/C have a large contribution to the society. However we must consider

Water is not considered a refrigerant until ASHRAE acknowledge it in 2009. This

refrigerant in lieu of chlorofluorocarbon-based refrigerants to drive the cooling process.

In high concentration, water from air is adsorb by the desiccant to drive

consumption, more environmental friendly. The Philippines which is situated at the

tropical receive more of the sunlight from the sun.

In developing a novel air conditioner based on principles that are inherently

to be successful. We first define what an air conditioning system does in building

Todays A/C systems have:

Maintain a healthy building environment.

In commercial and new residential, A/C provides to maintain indoor

A/C maintains humidity to prevent mold growth, sick building

Maintain human comfort by providing.

temperature control (heat removal)

Humidity control (water removal)

Some air filtering (particulate removal)

Distribute air throughout the space to encourage thermal uniformity.

In commercial applications, provide make-up air to accommodate exhaust air (EA)

flows. Todays A/C systems have:

Reasonable operations and maintenance (O&M) costs:

Cost of energy to operate

Ease of maintenance (for which the expectation is maintain at

Reasonable size and first cost

Must fit in an acceptable space

Must be cost effective compared to minimum efficiency A/C

At a minimum, a new air conditioner must be capable of meeting or surpassing

1.3 Opportunity Rationale

A typical Direct Expansion A/C is to be optimized for cost and thermodynamic

desiccant dehumidifier air-conditioner is a sustainable product. It provides a solution

to environmental, economical, and technological issues. This emerging technology has

thermodynamic potential that may overcomes many shortcomings of standard

dehumidifier air-conditioner concept has a strong potential to significantly reduce

Philippines energy consumption and provide value to energy companies by reducing

industrial and commercial establishment is expected to reduce the negative impacts

environmentally, economically and technologically.

1.3.1 Market Entry Timing

Also industries, commercial and residential establishment common necessity is air

conditioning. Air conditioning includes controlling the temperature, pressure, humidity

basically controlling the atmosphere in a confined space. Philippines as we know it is