Compared to fixed speed compressors that operate only at full speed, VSD compressors offers several benefit:
The largest component (about 70%) in the total cost of ownership for an industrial air compressor is not the equipment itself. It is electricity. A VSD compressor costs more to purchase than an otherwise identical fixed speed compressor, but the extra initial investment is typically returned through energy savings. VSD technology can reduce energy cost for a compressor by 35% to 50%, depending on the application and the size of the compressor, so annual savings with VSD can range from hundreds of dollars to tens of thousands of dollars.
The savings can be so significant that governments and electric utilities may offer financial incentives, such as rebates, tax credits or interest free loans, to encourage companies to upgrade to more energy-efficient VSD technology that helps reduce overall consumption of electricity and minimize sudden spikes in demand.