What makes up a transformer’s total cost of ownership?

In addition to its upfront capital cost, transformers also incur a cost for installation and for ongoing operation which is their running and maintenance costs. The rated power of a transformer is usually among the key determinants of its capital cost, but there are various design differences which will also come into play. To help the purchaser to effectively assess the capital cost, transformer manufacturers need to provide a detailed data sheet indicating required parameters such as losses, windings material and environmental conditions – to name a few. By specifying a lower loss design, a purchaser could calculate whether it is worth spending more upfront on the capital cost, in order to save on losses over the 20 to 30 year lifespan of the transformer.