Waste Heat Recovery Chillers: How to Calculate ROI for Your Generator Exhaust

Waste Heat Recovery Chillers: How to Calculate ROI for Your Generator Exhaust

Dec 18, 2026
9 min read
Financial Analysis

Waste Heat Recovery Chillers: How to Calculate ROI for Your Generator Exhaust


Quick Links: The Opportunity | ROI Calculation | Real Examples | Get Analysis


Your generator is throwing money into the atmosphere. Exhaust gases at 400-550°C contain enough energy to power substantial cooling. Waste heat recovery chillers (Exhaust-Fired VAMs) capture this "free" energy. Here is the financial case for why capturing exhaust makes sense.

Understanding the Opportunity

A 1,000 kW generator produces ~1.5 MW of thermal exhaust energy. BROAD's exhaust-fired VAMs can convert this into 350-450 TR of cooling without burning a drop of extra fuel.


The ROI Calculation Framework

1. The Cost (CAPEX)

Exhaust-Fired VAM System (500 TR): ₹7.7 - 9.4 Crores

Comparable Electric Chiller: ₹5 - 5.9 Crores

Premium to Recover: ~₹3 Crores

2. The Savings (Annual OPEX)
  • Electricity Avoided: ₹1.89 Crores (2.1M kWh @ ₹9/unit)
  • Demand Charges Avoided: ₹43.2 Lakhs (900 kVA reduction)
  • VAM Operating Cost: -₹79 Lakhs (Auxiliaries/Maintenance)

Net Annual Savings: ₹1.53 Crores

3. The Payback

Formula: Premium CAPEX ÷ Net Annual Savings

Result: 1.95 Years (approx. 23 months)

*Includes 8% generator efficiency gain from improved backpressure.

Real-World ROI Examples

  • Pharma (Bangalore): 600 TR VAM on 2x1250 kVA gensets. Payback: 2.1 Years.
  • Food Processing (Gujarat): 400 TR VAM on 1500 kVA genset. Payback: 1.8 Years.
  • Textile (Tirupur): 350 TR VAM on 1000 kVA genset. Payback: 1.6 Years.

Key Variables Affecting ROI

  • Operating Hours: 5,000+ hours/year yields ideal 2-year payback.
  • Electricity Rates: Rates above ₹10/kWh accelerate payback to <18 months.
  • Carbon Credits: Can add ₹15-30 lakhs/year in value.

Lifecycle Value (20 Years)

While electric chillers cost ~₹38.8 Crores over 20 years (due to power costs), a Waste Heat Recovery Chiller costs only ~₹20.9 Crores total. Total Lifecycle Savings: ₹17.9 Crores.

Optimizing Your Investment

  • Right-Sizing: Match VAM capacity to actual generator load profiles.
  • Hybrid Setup: Use VAM for base load and electric chillers for peak tips.
  • Performance Guarantees: BROAD offers contractual COP guarantees tied to exhaust conditions.

⭐ Calculate Your Waste Heat Potential

Don't let free energy escape. Contact BROAD for a site-specific financial model.

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BROAD Air Conditioning India Pvt. Ltd. (BROAD India) is a subsidiary of BROAD Group.

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Waste Heat Recovery Chillers: How to Calculate ROI for Your Generator Exhaust