Direct Air & Pipework Ltd
This guide explains how to identify and calculate the key costs of running a compressor, beyond the initial purchase price.
When investing in a compressed air system, the initial purchase price is only a small part of the overall cost. Over the lifetime of the system, energy consumption, maintenance requirements, and system availability play a much more significant role in determining total cost of ownership.
What contributes to compressor costs?
A comprehensive life cycle cost (LCC) formula looks like this:
Total LCC = Initial Investment + Lifetime Maintenance Costs + Lifetime Energy Costs
Here’s a breakdown of each component:
- Initial Investment – This includes the compressor unit itself, installation costs (such as piping, electrical connections, and foundations), and any control or monitoring systems. These costs will vary depending on the type and specification of the compressor selected.
- Maintenance Costs – Ongoing costs associated with servicing, spare parts, labour, and unplanned repairs. Maintenance intervals and whether servicing is handled in-house or by a professional compressed air provider can significantly influence these expenses.
- Energy Costs – Often the largest contributor, energy can account for up to 70–80% of a compressor’s lifetime cost. Efficiency should be a primary consideration, as selecting an energy efficient model can result in substantial long-term savings.
It’s clear, choosing an energy-efficient model and optimising its operation is crucial.
Identifying Cost-Saving Opportunities
Compressed air systems offer several opportunities to reduce running costs and improve efficiency:
- Variable-Speed Drives: Match compressor output to system demand, significantly lowering energy usage during periods of reduced load.
- Heat Recovery: Reclaim waste heat from compressors for use in space heating or process applications, improving overall energy efficiency.
- Leak Detection and Management: Air leaks can waste up to 30% of compressed air. Addressing these issues improves efficiency and reduces wear on the system.
- Regular Service: Scheduled maintenance helps prevent breakdowns, extends equipment life, and maintains optimal performance.
Why It Matters
Understanding lifecycle cost helps ensure:
- Better long-term value comparisons, not just short-term savings
- Informed purchasing decisions based on energy efficiency and reliability
- Focused investments in areas that deliver the greatest cost reductions
Selecting the right compressor isn’t just about meeting today’s requirements, it’s about controlling long-term costs and ensuring reliable operation over time. With energy costs representing a significant share of total ownership, even small efficiency gains can deliver a strong return on investment.
At Direct Air, we support customers with detailed energy audits, lifecycle cost analysis, and tailored recommendations to help you choose the most efficient and cost-effective solution for your business.
