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Ideal superheat and subcooling affects the operational performance of AC /Chiller units.
The purpose is to know the enthalphy for each process i.e in condenser, compressor and evaporator. By knowing this, you can choose a suitable design for the three components.
Super heat and sub cooling are related to refrigeration status, both have impact on performance of refrigeration cycle, and on the Qadd in the evaporator and Qrej from the condenser, the more sub cooled/super heated the water entering and leaving evaporator the more Qadd in the evaporator which maximize the performance and efficiency but on the other hand it also maximize the Qrej required to be removed in the condenser and thus maximize the condenser size and related fans or pumping power
superheat and subcooling it's very useful in HVAC or AC system to account the final temperature at the end of compression will depend on the working limits and the refrigerant. Taking these many factors into account, the refrigerating effect (A1 – D1 Evaporation) and the compressor energy (B1 – A1- Compression) may be read off directly in terms of enthalpy of the fluid.
To make proper sizing of compressor and condenser