Introducing the concept of “Total Cost of Ownership” (TCO) over the lifetime of an electric boiler and its comparison with a gas boiler.

Total Cost of Ownership(TCO) is a key indicator in industrial decision making, such as the choice of a steam boiler, as it assesses the real cost of an asset over its lifetime.

Total Cost of Ownership includes not only the initial acquisition investment, but also operating costs, maintenance expenses, energy efficiency and the useful life of the equipment.

In the steam industry, the choice between an electric boiler and a gas boiler should not be based solely on the purchase price, but on a detailed analysis of all the associated life-cycle costs.

Comparison between electric and gas boilers by TCO

Now that you are clear on the concept of Total Cost of Ownership, we can make a more in-depth comparison to understand the comparison between electric boilers and gas boilers according to TCO:

Initial investment

• Electric steam boiler: a standard industrial boiler with a capacity of 500 kg/hour costs approximately €100,000, including installation and start-up.
• Equivalent gas boiler: a model with the same steam generation capacity costs approximately €60,000, although the installation may require further adaptations, such as connection to the gas network and ventilation systems.

At first glance, the gas option appears more economical. However, this changes when we analyze the operating and maintenance costs.

2. Operating costs

Energy consumption is a key factor in TCO. Although the price of gas is usually lower than electricity, electric boilers have an efficiency of 99%, while gas boilers have an efficiency of 75% due to losses in combustion and gas evacuation:

• Electric boilers: they have no combustion losses and convert all energy into useful heat, which makes them highly efficient. However, the cost per kWh of electricity is usually higher than that of gas.
• Gas-fired boilers: they have energy losses due to combustion and flue gas evacuation, which results in higher fuel consumption. In addition, fluctuations in gas prices can generate uncertainty in long-term operating costs.

Adjusting operating costs to the kg/h of steam generated, the operating cost of an electric boiler for 500 kg/h of steam can be around 500,000 – 650,000 € in 20 years, while that of a gas boiler with the same capacity, operating at 75% efficiency, can be around 600,000 – 800,000 € in 20 years.

3. Maintenance costs

• Electric boilers: require minimal maintenance, as they have no burners, heat exchangers or flues. Their annual maintenance can cost approximately 3,000 – 5,000 €, which means a total cost over 20 years of 60,000 – 100,000 €.
• Gas boilers: require more costly periodic overhauls to prevent blockages in the gas lines and ensure efficient and safe combustion. In addition, heat exchangers may require frequent cleaning and replacements, raising the annual maintenance cost to 8,000 – 12,000 €, accumulating in 20 years a total of 160,000 – 240,000 €.

4. Useful life and contamination costs

• Electric boilers: since they are not subject to the effects of combustion, they tend to have a longer service life and less wear and tear.
• Gas boilers: suffer corrosion in the components due to combustion and constant exposure to high temperatures.

In terms of sustainability, electric boilers are a greener option, especially when used with electricity from renewable sources, eliminating CO₂ emissions and reducing the carbon footprint.

Additionally, gas boilers are subject to CO₂ emission taxes, which can increase their total cost of ownership. These taxes can add an additional €5,000 – €10,000 per year, accumulating to a total of €100,000 – €200,000 over 20 years.

Cost comparison chart (over 20 years of useful life) of an electric steam boiler vs. a gas boiler

Conclusion on the choice between electric and gas-fired steam boiler based on Total Cost of Ownership

While gas boilers have a lower initial cost, the Total Cost of Ownership shows that electric boilers can be a more cost-effective and efficient option in the long run, thanks to their higher efficiency, lower maintenance costs and sustainability.

In industrial environments where process stability is key, an electric boiler can offer a more reliable and adaptable solution to modern energy efficiency and emission reduction standards.

From Giconmes we want to invite you to know our steam generators for industrial use, which will allow you to achieve greater cost savings and better energy efficiency, using a renewable and natural source such as steam and electricity for the generation and transfer of heat for different industrial uses and at different pressures.