Like most things, it starts with good intentions. Drawn to the perceived simplicity and zoning flexibility of Variable Refrigerant Flow (VRF) systems, mechanical engineers have used them in their designs for multifamily housing, student residences and senior living communities.
What developers/building operators found was that, over the long term, these systems haven't delivered and, in fact, costs end up piling up over their lifetime. As buildings age and refrigerant regulations evolve, you can't easily repair or replace these proprietary systems, reducing their long-term value.
When you're holding onto a property for decades rather than flipping it after construction, you want a more robust, easy-to-maintain, and cost-effective HVAC solution. Increasingly, developers are finding that hydronic solutions deliver the value they want and need. While the up-front cost of a hydronic system is comparable or slightly higher than VRF alternatives (depending on the size of the building), the long-term benefits of better reliability, lifecycle cost and environmental attributes are proving to be far superior.
On the surface, VRF Systems seem ideal. They are compact, offer individual zoning, and have marketable energy-efficiency claims. But a few years after the installation, significant challenges become apparent, leading to substantial long-term costs and disruptions.
Limited Longevity and Proprietary Components: VRF Systems typically have a service life of 12 to 15 years. This is far shorter than a hydronic system that can operate efficiently for 25 years or more with the proper maintenance. Think about it, people have been using water as a heat source for thousands of years—it's a well-proven technology. When VRF systems fail, they require full replacement because the various components (e.g.compressors, branch selectors and even the refrigerant itself) are proprietary to the manufacturer. They are constructed so you can't mix and match equipment between brands, and there's a good chance that replacement parts aren't available, particularly for older units.
For owners of rental or senior housing, this lack of flexibility can translate into major headaches. A failed system doesn't just impact one tenant; it can disable multiple zones and entire wings within a building.
Evolving Refrigerant Safety Requirements: Efforts to reduce greenhouse gas emissions have focused on Global Warming Potential (GWP) refrigerants used in VRF systems. Newer low-GWP refrigerants such as A2L types are synthetic and, consequently, mildly flammable. Because of this, every branch selector box and refrigerant circuit that passes through an occupied space must include a leak detection system and an exhaust vent designed to remove the leaked refrigerant safely.
These aren't optional additions; they are required by code to ensure occupant safety. But they're not only unsightly, they add significant cost and complexity to the design. The leak detectors must be monitored and maintained; the exhaust connections need to be properly routed; and the entire system must be designed to mitigate hazards.
We've seen where many VRF specifications underestimate or overlook some of these requirements. Developers think they're getting a simple and efficient system, but the hidden costs of leak detection, wiring, exhaust systems and maintenance can quickly erode any upfront cost savings.
When you use a hydronic system powered by an air-to-water heat pump or a high-efficiency condensing boiler/chiller, you get a straightforward, future-proof solution for heating and cooling your building. Here's why:
Hydronic systems cost less over the lifetime of the system.
While the initial investment may be slightly higher than a VRF system, a hydronic system proves its worth with lower ongoing labor and replacement parts costs, and a longer equipment life. If you retain ownership of the building for a more extended period, you'll continue to see year-over-year savings, providing you with a sense of financial reassurance.
We've seen developers who have relied on VRF for years start to reevaluate their approach as they begin new projects where they want to maintain value. This shift in technology is driven by a growing understanding of the long-term costs and limitations of VRF systems, as well as the increasing availability of reliable and cost-effective hydronic solutions. When you're holding onto the property for 30 years instead of 10, you have more of an interest in what's going to break,and how expensive it will be to fix it.
Hydronics will give you peace of mind over the lifetime of your investment. They eliminate the complexity of refrigerant management while offering proven reliability, safety and energy-efficient operation for decades. When you're developing student housing, senior residences, or multifamily properties, the math is simple: invest more at the beginning to save more over the building's lifetime.
Ultimately, refrigerants will change and regulations will evolve… but water will always work.
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