Assess the return on a renewable energy investment against its lifetime savings.
Simple payback divides the up-front cost by the recurring annual benefit to get the number of years before the renewable installation 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.
Renewable Energy ROI
Payback (years) = Capital cost of the installation ÷ annual annual energy saving
Payback (years) = Capital cost of the installation ÷ annual annual energy saving Simple payback divides the up-front cost by the recurring annual benefit to get the number of years before the renewable installation 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: Capital cost of the installation, 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.