Understanding the full economic picture of vapor absorption machines, including capital expenses, operating costs, and hidden costs, is essential. It helps determine if your cooling system will be a valuable asset or a financial burden for the next two decades.

Capital Expenditure (CAPEX) Reality

Equipment Costs by Capacity:

Small (100-200 TR)

₹60-80 lakhs per unit

Medium (300-500 TR)

₹2.5-3.5 crores per unit

Large (800-1,200 TR)

₹5-7 crores per unit

Complete Installation Example (500 TR Steam VAM)

Cost Component	Amount
Equipment	₹3.2 crores
Auxiliaries (cooling towers, pumps, controls)	₹1.1 crores
Installation and commissioning	₹0.4 crores
Contingency	₹0.5 crores
Total CAPEX	₹5.2 crores (₹10.4 lakhs/TR)

Operating Expenditure (OPEX) Breakdown

Annual Operating Costs (500 TR Steam VAM, 6,000 hours)

Cost Item	Annual Cost
Steam consumption (₹1,800/ton)	₹9.07 crores
Auxiliary electricity	₹72 lakhs
Water and treatment	₹10 lakhs
Maintenance	₹9 lakhs
Total Annual OPEX	₹9.98 crores

VAM vs. Electric Chiller Economics

500 TR Electric Chiller Comparison

⚡ Electric Chiller CAPEX

₹3.2 crores

₹2 crores less than VAM

Annual OPEX

₹2.22 crores

Electricity (2.5M kWh @ ₹8/kWh) + maintenance

📊 Key Finding:

Initial Advantage: Electric chillers cost 38% less upfront

Operating Advantage: VAM saves ₹1.76 crores annually when using dedicated steam

The critical factor: if steam comes from waste heat recovery or existing processes with very low fuel costs, VAM economics change dramatically.

The Game-Changer: Waste Heat Applications

500 TR Exhaust-Fired VAM (using generator exhaust)

Parameter	Value
CAPEX	₹4.8 crores
Premium over electric: ₹1.6 crores
Annual OPEX:
Fuel cost (waste heat recovery)	₹0
Generator efficiency improvement credit	(₹15 lakhs)
Auxiliary electricity and water	₹82 lakhs
Maintenance	₹8 lakhs
Net Annual OPEX	₹75 lakhs

💡 Breakthrough Economics:

Compared to electric chiller OPEX of ₹2.22 crores, exhaust-fired VAM saves ₹1.47 crores annually

Payback Period: Only 13 months

This explains why engineers are increasingly choosing BROAD's exhaust-fired and waste heat recovery solutions despite higher upfront costs.

Hidden Costs That Matter

Downtime Expenses

Pharmaceutical:

₹15-40 lakhs per hour

Food Processing:

₹8-25 lakhs per hour

Data Centers:

₹50+ lakhs per hour

VAM Reliability Advantage: With fewer moving parts and no compressors, VAM systems significantly lower downtime risks compared to electric chillers.

Carbon Costs (Emerging Reality)

A 500 TR electric chiller produces about 2,050 tons of CO₂ annually

At a conservative estimate of ₹5,000/ton for carbon pricing, that amounts to ₹1.03 crores in annual carbon costs

VAM systems can cut this by 50-100%, making them economically competitive even without considering other savings

Demand Charges

Reducing a 1,000 kW peak load from a 500 TR electric chiller can save ₹43-72 lakhs every year in demand charges alone—a significant financial benefit for facilities with high power consumption peaks.

Configuration-Specific Economics

🔵 Steam VAM:

Best when steam is a waste product or boiler has extra capacity | ₹9-11 lakhs/TR installed

🟠 Hot Water VAM:

Ideal for low-temperature waste heat or solar thermal integration | ₹8-10 lakhs/TR installed

🟢 Exhaust-Fired VAM:

Great for facilities with generators or high-temperature exhaust | ₹11-14 lakhs/TR installed, often with low operating costs

🟣 Direct-Fired VAM:

Suitable when no heat source available but natural gas is accessible | ₹12-16 lakhs/TR installed

BROAD's Value Proposition

BROAD equipment typically carries a price premium of 10-15%. Is this worth it? Let's examine the economics:

Example: 500 TR Steam VAM

Manufacturer	COP	Equipment Cost
Standard Manufacturer	0.68	₹3.0 crores
BROAD	0.74	₹3.3 crores
BROAD Premium	+0.06	₹30 lakhs

✅ Annual Fuel Savings from Better COP:

₹80 lakhs per year

Payback on Premium: 4.5 months

Higher efficiency, lower maintenance, and 20 years of spare parts availability make BROAD's pricing economically logical despite higher initial costs.

Decision Framework

⚡ Choose Electric Chillers When:

Capital is limited
No heat source is available
Cooling is seasonal (less than 3,000 hours annually)
Electricity rates are very low (below ₹5/kWh)

❄️ Choose VAM Chillers When:

Waste heat sources are not fully used
Year-round cooling is required
Electricity rates are high (₹8+ per kWh) or grid reliability is poor
Carbon reduction is required
Natural gas is available at competitive prices

Conclusion

Absorption chiller decisions involve more than just upfront costs; they require a clear understanding of your energy situation and long-term goals. BROAD's vapor absorption machines provide better efficiency, flexible heat source options, and proven reliability, resulting in lower lifecycle costs for most industrial applications.

Facilities that achieve the best return on investment share common traits: consistent year-round cooling needs, access to waste heat or favorable fuel prices, and a willingness to consider the total cost of ownership rather than just the purchase price.

💰 Ready to Understand the Real Costs for Your Facility?

Contact BROAD India for a detailed techno-economic analysis that includes site-specific costs, energy modeling, and total cost of ownership comparison.

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The Real Cost of Absorption Chillers in India: CAPEX vs. OPEX Breakdown