TCO has been used as an argument for buying anything from compact fluorescent bulbs to Jaguar automobiles.
The argument usually revolves around an item whose initial price is higher, but which has lower ongoing (or operating) costs, and when these costs are combined, the higher-priced item proves to cost less to own over the long run. In the case of a compact fluorescent (CF) bulb, the bulb may cost $7, versus $1 for an incandescent bulb, but it consumes 18 Watts compared to the 75 Watts consumed by the incandescent bulb it replaces. In addition the CF bulb lasts ten times as long (10,000 hours vs. 1,000 hours.) This works out to a savings of 470 kWh – or about $50 – plus $3 in bulb costs. Continue reading