When making technology purchase decisions, return on investment (ROI) can help you and others determine. If a solution fits your budget. But that’s not the only time ROI is useful. It’s also important to look at ROI on a total cost of ownership (TCO) basis, not just the cost of acquisition. To better predict the profitability of your next purchase and, ultimately, to better justify future technology funding.
That’s why I’m always happy when we can offer our customers solutions that not only provide technology benefits, but also significant cost savings for the business. One such solution is the APC Smart-UPS Li-ion (Li-ion) battery technology. We’ve already discussed how advances in UPS battery technology are helping to reduce the total cost of ownership of UPS systems.
This is due to the evolution of UPS batteries from traditional VRLA (Valve Regulated Lead-Acid) batteries to lithium-ion batteries. Lithium-ion batteries have many advantages over VRLA batteries, including longer life, higher capacity, and lighter weight. These advantages can reduce the total cost of ownership by up to 35% for some companies. And up to 53% for APC Smart-UPS. Let’s take a closer look at how these savings are achieved.
UPS basics: the difference between VRLA and lithium-ion batteries.
The first important factor to consider when looking at the total cost of ownership is the fact that lithium-ion batteries last much longer than VRLA batteries without losing power. In general, the life of a lithium-ion battery is the same as that of the UPS itself, which is about 10 years. This means that the UPS battery does not need to be replaced, saving not only the cost of the battery but also the labor required to replace it.
One of the reasons for this longer life is that lithium-ion batteries can withstand higher temperatures (up to 40°C) than VRLA batteries without loss of performance.
Another advantage is that lithium-ion batteries are about one-third the weight of VRLA batteries. Many customers have sites with multiple VRLA UPS racks that require floor reinforcement, which increases construction costs. In this case, a UPS powered by lithium-ion batteries is a more economical option in terms of the total cost of ownership for this reason alone.
The VRLA has played its part for now.
Of course, not every business wants to make the additional upfront investment for a lithium-ion battery-powered UPS. However, if you have multiple remote locations. Such as a retailer or a large company with many branches without IT staff. Then a maintenance-free lithium-ion UPS may make sense. Small businesses with one or two local sites may find that a traditional VRLA UPS. Offers a better return on investment for their needs.
Total Cost of Ownership Comparison: VRLA and Lithium-Ion Inverters
To see how the TCO calculation works in practice, let’s look at the 10-year TCO of an APC Smart-UPS lithium-ion inverter. And a Smart-UPS lead-acid inverter. Both are rated for 1000VA. It also assumes an operating temperature of 25°C.
In this example, the purchase price of the VRLA model might be half that of the Li-Ion model. But as you’ll see, that’s just the beginning of the story.
To achieve the capacity of a lithium-ion inverter. An external battery pack with two batteries connected to the VRLA inverter is required (at an additional cost). Since the lifetime of a VRLA battery is approximately 4 years at 25 °C, each battery, including the external battery, must. Be replaced twice in 10 years. Considering the cost and effort of six batteries, this is a high price in the long run.
If the initial investment cost of a lithium-ion UPS system is higher, we will not add anything here. The life of a lithium-ion battery is equivalent to a 10-year TCO calculation, i.e., no recharging and no labor costs.
In the end, the VRLA model costs almost 53% more than the lithium-ion model over 10 years. So the lithium-ion model is the better long-term investment.
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