Quantify the annual saving from an energy efficiency measure and its payback.
Simple payback divides the up-front cost by the recurring annual benefit to get the number of years before the efficiency measure has paid for itself. Everything after that point is net gain, which the lifetime figures make explicit. Payback is the first screen most buyers apply: a system that pays back inside its warranty period is a very different proposition from one that does not.
Energy Savings
Payback (years) = Cost of the efficiency measure ÷ annual annual energy saving
Payback (years) = Cost of the efficiency measure ÷ annual annual energy saving Simple payback divides the up-front cost by the recurring annual benefit to get the number of years before the efficiency measure has paid for itself. Everything after that point is net gain, which the lifetime figures make explicit.
Payback is the first screen most buyers apply: a system that pays back inside its warranty period is a very different proposition from one that does not.
This calculator takes 3 inputs: Cost of the efficiency measure, Annual energy saving, Expected life. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.