How to Save Money When Buying Electric Steam Boiler
Mar. 31, 2025
Boiler Energy Efficiency: Savings & Performance
Tired of your gas boiler guzzling energy like a thirsty elephant for home and water heating? You’re not alone. Many homeowners are in the same boat, facing hefty bills and inefficient heating systems, including outdated furnaces and gas boilers, considering the switch to new, modern boilers. But there’s good news: optimizing your home heating and hot water systems for energy efficiency, including boilers and furnaces, is within reach. Simple tweaks to furnaces and hot water systems can transform your clunky old system into a lean, mean heating machine that saves you money with significant energy savings while keeping toes toasty. Let’s dive into how significant energy savings can be less of a dream and more of your reality with the right product study.
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Understanding Boiler Efficiency Ratings
AFUE Explained
Annual Fuel Utilization Efficiency, or AFUE, measures a boiler’s efficiency in converting fuel to heat by assessing combustion and flue gas losses. It shows how much fuel, through combustion in high-efficiency furnaces, becomes heat to meet your home’s heating load. The higher the AFUE rating, the more efficient the boiler at converting combustion heat energy to meet the heating load.
A good AFUE rating means less fuel waste. Think of it like a car’s miles per gallon (MPG). A car with high MPG uses less gas to travel far. Similarly, boilers and furnaces with high AFUE ratings use less fuel or electricity to heat your home.
Efficiency Levels
Boilers have different efficiency levels. Standard furnace models typically offer lower AFUE ratings, indicating less heat energy conversion efficiency, than high-efficiency ones.
Standard boilers, like furnaces, may have an efficiency rating around 80% to 85%, converting heat energy with some loss to vapour and moisture. This means furnaces convert up to 85% of their fuel into heat, according to the study. High-efficiency boilers can exceed 90%. Some reach up to 98%.
The gap between standard and high-efficiency furnaces may seem small. But it makes a big difference in furnace energy costs and environmental impact over the process time.
Energy Costs Impact
Efficiency ratings greatly affect energy costs. Higher-rated boilers and furnaces save money on bills because they use less fuel in the heating process.
Here is an example:
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A standard boiler might cost $1,000 annually in gas.
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A high-efficiency unit could reduce moisture in the process by about 15%.
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That’s roughly $150 saved each year just by choosing a better model.
Always consider long-term savings when comparing options.
Types and Efficiency of Different Boilers
Condensing Boilers
Modern boilers have improved a lot in terms of energy efficiency and moisture processing. Condensing boilers are a prime example. They capture heat and moisture from exhaust gases that would be wasted in non-condensing boilers.
These units can achieve efficiencies up to 90% or higher. That’s because they convert more fuel into usable heat.
Non-Condensing Boilers
On the other hand, non-condensing boilers typically operate at lower efficiencies. They might reach around 60-80%. These older models lose more heat through the flue.
Non-condensing types are less expensive upfront but may cost more over time due to higher energy bills.
Electric Boilers
Electric boilers are known for their high efficiency levels, often near 100%. This is because they don’t waste heat through flues as gas and oil units do.
However, electricity can be an expensive heating source depending on your local rates. So while electric boilers use most of the energy they draw, operating costs can be high.
Gas and Oil Boilers
Gas and oil-fired boilers vary in efficiency. Older models generally have lower efficiency than modern ones equipped with advanced technology like modulating burners.
A modulating burner adjusts its flame size based on real-time heating demand which helps save fuel and improves overall boiler performance.
For instance, some newer gas boilers come with these burners and boast efficiencies above 85%.
Strategies for Improving Boiler Efficiency
Regular Maintenance
Regular check-ups are key. They keep boilers running smoothly. A well-maintained boiler uses less energy. This saves money and reduces emissions.
Maintenance includes checking for leaks or damage. Technicians also clean and replace parts as needed. These actions prevent energy loss from inefficiencies.
Insulation Upgrades
Insulation is crucial for heat retention in boilers, especially when dealing with moisture content in fuels like brown coal or rank coals. Poor insulation leads to heat escape, which means more fuel is needed to maintain temperature.
Upgrading insulation materials can help retain more heat within the system. It ensures that the energy produced by burning fuel isn’t wasted but used effectively to generate steam or hot water.
Economizers Installation
Economizers recover waste heat from flue gases, a smart move for improving efficiency. By preheating incoming feedwater, economizers reduce the need for extra heating energy.
Installing an economizer can be particularly beneficial when using fuels with high moisture content, such as moist lignite or other types of rank coal that require more energy to burn efficiently due to their moisture levels.
Boilers using these coals benefit greatly from economizers because they make use of otherwise lost thermal energy, optimizing overall performance and cutting down on excess fuel consumption.
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Regular maintenance prevents unnecessary losses.
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Upgraded insulation keeps heat where it belongs.
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Economizers turn waste into valuable preheat.
Retrofitting and Replacing for Enhanced Efficiency
Retrofit vs. Replace
When your boiler shows signs of inefficiency, a decision must be made. Should you retrofit or replace? Retrofitting is often less costly and can significantly improve efficiency. It’s ideal when the boiler’s structure is sound but just needs an update in technology or components.
However, replacement becomes necessary when a boiler is too old, repairs are too frequent, or it’s not sized correctly for your building anymore. A new high-efficiency unit can offer significant energy savings, sometimes enough to justify the initial investment over time.
Modern Controls
Modern combustion control systems are at the heart of improving boiler energy efficiency. They precisely regulate air and fuel supply to achieve optimal combustion conditions. This results in:
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Reduced fuel consumption
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Lowered operating costs
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Minimized waste of energy
Installing these controls can transform an outdated system into a more efficient one without replacing the entire unit.
Low-NOx Burners
Low-nitrogen oxide (low-NOx) burners reduce harmful emissions while also enhancing performance. These advanced burners:
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Are essential for meeting emission regulations
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Improve heat transfer
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Lead to better overall efficiency
Maximizing Fuel Savings with Heat Recovery
Stack Economizers
Boiler systems can lose heat through exhaust gases. Stack economizers capture this waste heat. They use it to preheat cold water entering the boiler. This reduces the fuel energy needed for water heating.
Installing a stack economizer cuts down on energy consumption. It also lowers fuel bills significantly. Businesses often see a fast return on investment from these devices.
Blowdown Systems
Regular maintenance of boilers includes blowdown procedures. These remove impurities and prevent scale buildup, which can lead to inefficiencies.
Blowdown heat recovery systems take advantage of this necessary process by capturing the heat from hot water that’s drained away during blowdown and using it to preheat fresh water coming into the system.
This recycling of heat energy means less fossil fuel is burned in home heating or industrial furnaces, reducing both costs and environmental impact.
Condensate Return
Steam boilers produce condensate, which holds valuable thermal energy. By using condensate return systems, you can send this heated water back into your boiler instead of wasting it.
Returning hot condensate saves on both fuel bills and reduces heating load demand on your furnace or boiler system because less raw coal or other fuels are required to bring new water up to temperature.
A well-maintained condensate return system minimizes idle losses associated with combustion processes in furnaces by keeping more heat within the system itself rather than allowing it to escape as flue gas or radiant heating loss through poor insulation.
Boiler Controls and Energy Saving Techniques
Programmable Thermostats
Programmable thermostats are a key tool in managing the operation of heating systems. They allow you to set temperatures for different times of the day. This means your boiler works less when you’re away or asleep. Smart controls take this further. They learn your schedule and adjust heating without manual input.
By using these technologies, boilers maintain ideal room temperatures more efficiently. For instance, rather than heating an empty home, a thermostat can lower the temperature until you return.
Oxygen Trim Systems
Oxygen trim systems optimize combustion by adjusting the air-to-fuel ratio in real-time. This ensures that fuel burns effectively with minimal waste.
These systems measure oxygen levels in flue gases to fine-tune burner operation. Properly calibrated, they help maintain consistent water temperature and reduce excess vapour loss.
Variable Speed Drives
Variable speed drives (VSDs) control electric motors on pumps within hot water systems. Motors use only as much power as needed at any given time.
The benefits include:
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Lower electricity consumption
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Reduced wear on mechanical parts
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Extended equipment lifespan
With VSDs, radiators receive thermal energy based on actual demand rather than constant full power supply.
Ensuring Efficient Boiler Sizing and Installation
Boiler Sizing
Correct sizing is key for a boiler’s operational efficiency. A size too small won’t meet the heating demand. Too large, and it wastes energy. Experts use calculations to find the right size.
They consider factors like building size and climate. For example, a larger home in a cold area needs a bigger boiler than a small apartment in a mild climate.
Professional Installation
A professional installation ensures your new boiler works well. Installers follow strict guidelines during setup. They make sure everything is connected correctly.
Professionals also test the system after installing it. This helps catch any issues early on, preventing future problems.
Commissioning Practices
Proper commissioning means checking all parts of the boiler are working as they should be before regular use begins. It involves tasks like verifying control settings and ensuring proper airflow.
Commissioning makes sure your boiler runs at peak efficiency from day one. This practice can extend its lifespan too, saving money over time.
Closing Thoughts
You’ve navigated the ins and outs of boiler efficiency, from understanding ratings to exploring various types and their efficiencies. Armed with strategies to boost performance, retrofitting tips, and savvy controls, you’re now equipped to turn your boiler into a paragon of energy thrift. It’s not just about saving pennies; it’s about maximizing every ounce of fuel for a greener footprint and a fuller wallet.
Don’t let this be just another read. Take action! Assess your boiler, implement the tweaks, and watch the savings roll in. Your journey towards an eco-friendlier home or business starts with that first step—make it count. If you’ve got questions or need a hand, reach out to a pro. Together, let’s crank up efficiency and dial down those bills!
Purchasing Energy-Efficient Large Commercial Boilers
Related Covered Product Categories
Small Commercial Boilers
Residential Gas Boilers
Commercial Gas Water Heaters
Residential Gas Furnaces
>">Find more Heating and Cooling Equipment efficiency requirements and a full list of covered product categories >>
The Federal Energy Management Program (FEMP) provides acquisition guidance for large commercial boilers, a product category covered by FEMP-designated efficiency requirements.
FEMP's acquisition guidance and efficiency requirements apply to gas- or oil-fired, low-pressure hot water or steam boilers used in commercial space heating applications with a rated capacity above 2,500,000 and at or below 10,000,000 British thermal units per hour (Btu/h). High-pressure boilers (i.e., those used in industrial and cogeneration applications) are excluded, while residential boilers (i.e., those with a capacity less than 300,000 Btu/h) and small commercial boilers (above 300,000 Btu/h and at or below 2,500,000 Btu/h) are covered by the ENERGY STAR program.
This acquisition guidance was updated in June .
Find Product Efficiency Requirements
Federal purchases of commercial boilers must meet or exceed the minimum efficiency requirements and thermal efficiencies listed in Table 1. These efficiency levels can be voluntarily adopted by non-federal organizations, institutions, and purchasers.
Table 1. Efficiency Requirements for Large Commercial BoilersProduct ClassRated CapacityFuelHeating MediumEfficiency* (%)Large Gas-Fired Hot Water>2,500,000 Btu/h and ≤10,000,000 Btu/hGasHot WaterEc ≥ 96.0Large Gas-Fired Steam>2,500,000 Btu/h and ≤10,000,000 Btu/hGasSteamEt ≥ 83.7Large Oil-Fired Hot Water>2,500,000 Btu/h and ≤10,000,000 Btu/hOilHot WaterEc ≥ 89.0Large Oil-Fired Steam>2,500,000 Btu/h and ≤10,000,000 Btu/hOilSteamEt ≥ 85.8*Both thermal efficiency (Et) and combustion efficiency (Ec) are based on 10 CFR Part 431.86 - Uniform test method for the measurement of energy efficiency of commercial packaged boilers.With the Clean Energy Rule finalized in Spring , federal agencies must significantly reduce the use of on-site fossil fuels in new and majorly renovated facilities used for federal purposes. From FY to FY , federal entities must reduce the use of fossil fuels by 90% in facilities that are newly constructed or undergoing major renovation (exceeding a total cost threshold of $3.8 million in dollars for federally owned buildings). To comply, contracting officers should avoid purchases of commercial fossil fuel-fired boilers. Federal buyers are encouraged to consult the Clean Energy Rule webpage for further guidance. If no technically practicable alternative to a fossil-fueled product can be found that meets the mission requirements of the agency, an agency may obtain guidance, or request technical assistance, or petition for downward adjustment of the fossil fuel reduction target from FEMP by contacting the Clean Energy Rule team.
FEMP has calculated that a 3,000,000 Btu/h gas-fired hot water commercial boiler meeting the required combustion efficiency level of 96.0% Ec saves money if priced no more than $59,703 above the base model. The best available model saves the average user more: $66,839 in lifetime energy costs. Table 2 compares three types of product purchases and calculates the lifetime cost savings of purchasing efficient models. Federal purchasers can assume products that meet FEMP-designated efficiency requirements are life cycle cost-effective.
Table 2. Lifetime Savings for Efficient 3,000,000 Btu/h Gas-Fired, Hot Water BoilersPerformanceBest AvailableRequired ModelBase ModelCombustion Efficiency98.0%96.0%82.0%Annual Energy Use (therms/yr)35,,,000Annual Energy Cost ($/yr)$29,808$30,429$35,625Lifetime Energy Cost (25 year)$342,552$349,689$409,392Lifetime Energy Cost Savings$66,839$59,703======Performance Column
Annual Energy Use: 1,400 full-load hours per year, for 25 years.
Annual Energy Cost: Calculated based on an assumed natural gas price of 8.48¢ per therm, which is the average price at federal facilities in the United States (Site-Delivered Energy Use by End-Use Sector and Energy Type in Fiscal Year ).
Lifetime Energy Cost: Future electricity price trends and a 3% discount rate are from the Energy Price Indices and Discount Factors for Life-Cycle Cost Analysis – : Annual Supplement to NIST Handbook 135 and NBS Special Publication 709 (NISTIR 85--39).
Lifetime Energy Cost Savings: The difference between the lifetime energy cost of the less efficient model and the lifetime energy cost of the required model or best available model.
Best Available Model Column
Calculated based on highest efficiency model identified in publicly provided manufacturer data as of June . Note that more efficient models may be introduced to the market after FEMP's acquisition guidance is posted.
Required Model Column
Calculated based on FEMP-designated efficiency requirements. Federal agencies must purchase products that meet or exceed FEMP-designated efficiency levels.
Base Model Column
Calculated based on the current federal minimum efficiency standard for this product type.
Determine When FEMP-Designated Products Are Cost-Effective
An efficient product is cost-effective when the lifetime energy savings (from avoided energy costs over the life of the product, discounted to present value) exceed the additional up-front cost (if any) compared to a less efficient option. FEMP considers up-front costs and lifetime energy savings when setting required efficiency levels. Federal purchasers can assume products that meet FEMP-designated efficiency requirements are life cycle cost-effective. In high-use applications or when energy rates are above the federal average, purchasers may save more if they specify products that exceed FEMP efficiency requirements (e.g., the best available model).
Purchasing Requirements
Federal laws and requirements mandate that agencies purchase ENERGY STAR-qualified products or FEMP-designated products in all product categories covered by these programs and in any acquisition actions that are not specifically exempted by law.
These mandatory requirements apply to all forms of procurement, including construction guide and project specifications; renovation, repair, energy service, and operation and maintenance (O&M) contracts; lease agreements; acquisitions made using purchase cards; and solicitations for offers.
FAR Contract Language
Federal Acquisition Regulation (FAR) Part 23.206 requires agencies to insert the clause at FAR section 52.223-15 into contracts and solicitations that deliver, acquire, furnish, or specify energy-consuming products for use in federal government facilities.
To comply with FAR requirements, FEMP recommends that agencies incorporate efficiency requirements into technical specifications, the evaluation criteria of solicitations, and the evaluations of solicitation responses.
Agencies may claim an exception to the Clean Energy Rule if no alternative to a fossil-fuel powered product is found that meets the technical needs and mission requirements of the agency. If an agency wishes to obtain further guidance, request technical assistance or petition for downward adjustment on the fossil fuel reduction target from FEMP, they may do so by contacting the Clean Energy Rule team and following the petition process. Contracting officers should still aim to purchase products that meet the ENERGY STAR or FEMP-designated requirements and minimize emissions as much as possible.
Products meeting FEMP-designated efficiency requirements may not be life cycle cost-effective in certain low-use applications or in locations with very low rates for natural gas or fuel oil. However, for most applications, purchasers will find that energy-efficient products have the lowest life cycle cost.
Agencies may claim an exception to federal purchasing requirements through a written finding that no FEMP-designated or ENERGY STAR-qualified product is available to meet functional requirements, or that no such product is life cycle cost-effective for the specific application. Learn more about federal product purchasing requirements.
Federal Supply Sources and Product Codes
The federal supply sources for energy-efficient products are the General Services Administration (GSA) and the Defense Logistics Agency (DLA).
The U.S. Department of Agriculture (USDA) and U.S. Environmental Protection Agency (EPA) provide programs that help federal agencies buy products with positive environmental attributes.
Identification codes for product categories covered by sustainable acquisition requirements are provided by DLA and the United Nations Standard Products and Services Code (UNSPSC).
Under the Multiple Award Schedule program, GSA issues long-term governmentwide contracts that provide access to commercial products, services, and solutions at pre-negotiated pricing.
Federal buyers can use the GSA Multiple Award Schedules to find a vendor and pull up their latest price list. Alternatively, buyers can search for a specific product in GSA Advantage! or enter the product in GSA eBuy to get a quote from multiple vendors. Before purchasing a product through one of these channels or a preferred vendor, buyers should make sure the product meets the FEMP or ENERGY STAR efficiency requirements. For solicitations, buyers should include the relevant FAR clause and incorporate energy efficiency into the contract language and evaluation criteria to ensure compliance with the federal purchasing requirements.
TAKE ACTION
- Review the Multiple Award Schedule program.
- Visit the GSA Advantage! online shopping network and associated acquisition tool GSA eBuy.
- Learn about efficient, healthy buildings and environmentally responsible purchasing from the Sustainable Facilities (SF) Tool.
- Review the Multiple Award Schedule program.
DLA offers products through the Defense Supply Center Philadelphia and online through FedMall (formerly DOD EMALL).
TAKE ACTION
- Visit FedMall.
Products sold through DLA are codified with a 13-digit National Stock Number (NSN) and, in some cases, a two-letter Environmental Attribute Code (ENAC). The ENAC identifies items that have positive environmental characteristics and meet standards set by an approved third party, such as FEMP and ENERGY STAR.
USDA's BioPreferred Program was created to increase the purchase and use of biobased products. Federal law, the FAR, and Presidential Executive Orders direct that all federal agencies and their contractors purchase biobased products in categories identified by USDA.
TAKE ACTION
- Review 139 categories of biobased products.
EPA offers several resources for choosing which products to buy. The Environmentally Preferable Purchasing Program helps federal government purchasers utilize private sector standards and ecolabels to identify and procure environmentally preferable products and services.
TAKE ACTION
- Learn more about the Environmentally Preferable Purchasing Program.
- Review federal purchasing specifications, standards, and ecolabels.
- Get an overview of the Electronic Product Environmental Assessment Tool (EPEAT) and procuring environmentally preferable electronic products.
- Learn more about the Environmentally Preferable Purchasing Program.
UNSPSC is a worldwide classification system for e-commerce. It contains more than 50,000 commodities, including many used in the federal sector, each with a unique eight-digit, four-level identification code. Manufacturers and vendors are beginning to adopt the UNSPSC classification convention and electronic procurement systems are beginning to include UNSPSC tracking in their software packages. UNSPSCs can help the federal acquisition community identify product categories covered by sustainable acquisition requirements, track purchases of products within those categories, and report on progress toward meeting sustainable acquisition goals.
TAKE ACTION
- Review FEMP's table of product codes for ENERGY STAR and FEMP-designated covered product categories.
Commercial Boilers Schedules and Product Codes
GSA offers commercial boilers through Multiple Award Schedule Industrial Products HVAC and C schedules.
DLA's ENAC for commercial boilers is "HF."
The UNSPSCs for commercial boilers are , , , , and .
Buyer Tips: Make Informed Product Purchases
A boiler system should be capable of meeting the building's peak heating demand and also operate efficiently at part-load conditions. Selecting the right system and properly sizing a boiler requires knowledge of both the peak demand and load profile. If building loads are highly variable, as is common in commercial buildings, designers should consider installing multiple small (modular) boilers in addition to boilers that have modulating burners. In periods of low demand, some of the boilers can be isolated from the other boilers and not incur any standby losses or cycling losses. They can also be automatically staged such that each boiler is running at its most efficient operating point without incurring additional cycling.
For guidance on boiler rightsizing and quality installation, consult the American National Standards Institute/Air Conditioning Contractors of America Standard 5: HVAC Quality Installations Specification (ANSI/ACCA 5 QI ).
Federal procurement officers and buyers should consider specifying boilers with the following features:
- Condensing: Hot water boilers include both condensing and non-condensing varieties. Condensing boilers that are able to extract heat from water vapor in the combustion gases for use in producing hot water are typically more efficient than non-condensing models. There are some tradeoffs to consider along with the efficiency improvements. Condensing boilers must be made of corrosion resistant materials which can increase their manufacturing cost. Although more expensive, condensing boilers' increased efficiency can significantly reduce energy costs to a point where savings exceeds the cost premium compared to a standard, non-condensing boiler. Hybrid systems are also useful particularly in retrofit applications to integrate new condensing boilers into an existing modular system with conventional boilers.
- Water temperature reset: Hot water boilers should have the capability for water temperature reset. This is typically based on the outdoor air temperature or the return water temperature. When the heating load is reduced, the supply water is set to a lower temperature.
- Modulating burners: It is recommended that boilers have the capability to vary their heating output by modulating the burner. Most of the time boilers operate at part load. To prevent excessive cycling and the losses that accompany them, specify boilers that have modulating capability. A minimum turndown ratio of 5:1 is recommended for gas-fired, hot-water boilers. This is particularly important in condensing boilers that run more efficiently at part load.
- Low mass: Because boilers cycle on and off and it takes time to bring a high-mass boiler up to operating temperature, using low-mass boilers will reduce energy consumption. In addition, some boilers can be brought online quickly, therefore avoiding the need to keep a boiler on hot standby.
- Remote monitoring capability: Remote monitoring capability is useful to manage boiler operation and to detect any malfunctions in a timely manner.
- Precise air-fuel ratio control: It is important to keep the air-fuel ratio at optimum levels at part-load operation as well as full-load operation. This is better accomplished by using sensor-driven servos rather than a mechanical linkage (e.g., jack shaft) between the gas input and the blower damper. Oxygen trim systems should be used on larger boilers. Oxygen trim systems monitor the oxygen in the flue gas and adjust the air-fuel ratio for optimum combustion efficiency.
- Optimum start control: An optimum start control fires up a boiler so that it fires just in time to heat up a building before it is occupied in the morning.
- Other enhancements: Other options to increase efficiency of the heating system include reusing heat from blow down and return condensate for steam boilers, using electronic ignition devices, and increasing boiler and piping insulation.
Many new energy consuming commercial boilers come equipped with Internet of Things (IoT) sensing components, and network connectivity. Making a new purchase or replacement represents a prime opportunity to evaluate the vulnerabilities of your network. All IoT-enabled devices introduce novel exposures to potential data breaches. Building controls and heating, ventilating, and air conditioning systems are no exception. Security can almost never be networked in after the fact, and so it is important to ensure that your networked devices are secure. Also, regularly testing for network vulnerabilities is key. For more information on how to build cybersecure networks of building technologies, consult FEMP’s Energy and Cybersecurity Integration resources and Cyber-Securing Facility Related Control Systems fact sheet.
User Tips: Use Products More Efficiently
Several diagnostic and maintenance procedures are important to maintain efficient boiler operation. Flue gas temperature monitoring is useful in detecting efficiency and operating problems. Maintaining steady excess air levels (with an oxygen trim sensor) ensures that burners will mix air and fuel properly. Low water levels can damage boilers, so water levels should be checked frequently as part of a regular maintenance program. Water treatment can prolong boiler life as well as increase efficiency. Waterside and fireside surfaces should be cleaned annually.
The Boiler Efficiency Institute provides maintenance and operation manuals for boilers and boiler control systems. To encourage quality operations and maintenance, building engineers can also refer to ASHRAE/ACCA Standard 180: Standard Practice for Inspection and Maintenance of Commercial Building HVAC Systems. In addition, the FEMP O&M Best Practices Guide, Release 3.0, Chapter 9 provides valuable information on operation and maintenance of boiler systems.
Lawrence Berkeley National Laboratory provided supporting analysis for this acquisition guidance.
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