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ITGlossary · UPS technology
Total Cost of Ownership (TCO)
The total cost of a UPS over its whole life: purchase, installation, energy, maintenance and battery replacement.
Technical level:Intermediate
Total cost of ownership shows what a UPS really costs over its whole service life, not just on the day of purchase. It includes installation, energy lost to inefficiency, room cooling, battery replacements (typically every 3–5 years for standard VRLA), maintenance and the cost of possible downtime.
In systems that run continuously, efficiency matters a great deal. For example, at a 4.5 kW load, a 2% difference in efficiency amounts to about 790 kWh per year, not counting the extra cooling.
A common mistake is comparing quotes on purchase price alone. Ask for efficiency figures at your actual load level and calculate battery costs over at least ten years.
Related terms
- AutonomyThe time a battery-powered system (like a UPS) can continue operating critical loads after a power failure.
- BypassA path that feeds the load directly from the mains, without protection, when the UPS is overloaded, faulty or under maintenance.
- Cold Start FunctionA feature that allows a UPS to be started directly from the battery without utility power.
- Cooling FanA built-in fan in UPS or batteries used to dissipate heat during operation.
- DC EfficiencyMeasures how effectively a UPS converts battery power into output power during battery mode.
- InverterThe component inside a UPS that converts DC power from batteries back to usable AC power.