A life cycle cost (LCC) calculation allows objective comparison of the total life cycle costs of two or more alternative products. As the comparison takes into account overall investment costs and energy costs, it provides a measure for the total cost incurred throughout the product's service life. Imagine, for example, a situation where a choice must be made between two refrigerators which utilise conventional and energy-efficient technology respectively. The former will often be marketed on the basis of its low price but will not necessarily be the cheapest over time. Quite the contrary.
Note 1: The LCC comparison does not take into account differences in warranty period length, environmental profile or after-sale service. Nor does it say anything about the physical ability of the products to refrigerate during peak-load conditions or about their operational reliability. Note 2: The products available for comparison all feature on the UK Energy Technology List.