Electric Centrifugal Chillers vs. Vapor Absorption Machines: A 2025 Cost Comparison

Electric Centrifugal Chillers vs. Vapor Absorption Machines: A 2025 Cost Comparison

Jan 23, 2026
9 min read
Energy & Industrial Efficiency

Electric Centrifugal Chillers vs. Vapor Absorption Machines: A 2025 Cost Comparison


Quick Links: Capital Investment | Operating Costs | Lifecycle Costs | Performance Comparison | Carbon Footprint | Get Guidance


Capital Investment: The Upfront Reality 💰

System Equipment / Integration Installation / Commissioning Total CAPEX
500 TR Electric Centrifugal Chiller Equipment: ₹3.5-4.2 cr
Cooling tower & auxiliaries: ₹1.3-1.7 cr
₹0.7-0.9 cr ₹5.5-6.8 cr
500 TR BROAD Steam VAM Chiller VAM equipment: ₹3.2-3.8 cr
Steam integration & auxiliaries: ₹2.2-2.7 cr
₹1.0-1.3 cr ₹6.4-7.8 cr

CAPEX Verdict: Electric chillers cost 15-20% less upfront, but this is only the first chapter of the cost story.


Operating Costs: Where True Economics Emerge 🔥❄️

Electric Chiller Annual Costs (6,000 hrs, 70% load)
  • Electricity: 1.92-2.22 million kWh @ ₹9/kWh = ₹1.73-2.0 cr
  • Demand Charges: 950-1,050 kVA = ₹45.6-50.4 lakhs
  • Maintenance: Routine ₹8-10 lakhs + Compressor rebuild ₹4-6 lakhs
  • Total Annual Cost: ₹2.30-2.66 crores
BROAD Steam VAM Annual Costs (6,000 hrs, 70% load)
  • Steam/Fuel: Waste steam → ₹0; dedicated steam → ₹70-90 lakhs
  • Auxiliary Electricity: Pumps & controls ₹6-8 lakhs
  • Maintenance: ₹6-8 lakhs
  • Total Annual Cost: ₹12-106 lakhs (depending on steam source)

Operating Cost Advantage: VAM saves ₹1.60-2.54 crores annually.

Payback with Waste Heat ♻️

When BROAD VAM chillers utilize waste heat from DG set exhaust, process cooling, boiler economizers, or furnace exhaust, fuel cost approaches zero. Incremental CAPEX: ₹1.0-1.5 cr, Annual savings: ₹2.2-2.5 cr → Payback: 5-8 months ⏱️

20-Year Lifecycle Cost Comparison 📊

System Initial CAPEX 20-year OPEX (discounted) Major Overhauls Total Lifecycle Cost
Electric Centrifugal Chiller ₹6.0 cr ₹31.5 cr ₹2.0 cr (Year 12 rebuild) ₹39.5 cr
BROAD Steam VAM (Waste Heat) ₹7.0 cr ₹4.2 cr ₹1.5 cr ₹12.7 cr

Lifecycle Savings: ₹26.8 crores over 20 years ✅

Performance Comparison Beyond Cost ⚡

Factor Electric Chiller BROAD VAM
COP5.0-6.50.7-1.3 (thermal)
Primary EnergyElectricityHeat (low-grade)
Electricity Use0.60-0.65 kW/TR0.01-0.02 kW/TR
Grid Dependency100%Minimal
RefrigerantHFCs (GWP 675-1,430)Water (GWP 0)
Noise Level80-90 dB60-70 dB
Compressor RebuildsEvery 10-15 yrsNone
Uptime95-97%98-99.5%
Operational Life15-20 yrs20-30 yrs

Carbon Footprint Analysis 🌱

  • 500 TR Electric Chiller: 1.92-2.1 million kWh, 1,722 tons CO₂/year
  • 500 TR BROAD VAM (Waste Heat): 45,000 kWh auxiliary, 37 tons CO₂/year
  • Carbon Reduction: 98% reduction (~1,685 tons CO₂ annually)

Real-World Applications ✅

  • Pharma Plant, Gujarat: 600 TR exhaust-fired VAM, ₹2.35 cr savings, payback 1.8 yrs
  • Textile Mill, Tirupur: 500 TR hot water VAM, ₹1.82 cr savings, payback 2.1 yrs
  • Data Center, Bangalore: 800 TR steam VAM, PUE 1.68→1.38, ₹3.1 cr savings

⭐ Ready to Compare Electric vs. VAM for Your Facility?

Discover how BROAD VAM can transform waste heat into cooling, cut costs, and reduce carbon footprint.

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Electric Centrifugal Chillers vs. Vapor Absorption Machines: A 2025 Cost Comparison