The Payback

Sample Energy Efficiency Project Payback
Energy-Efficient Project Payback (years) Average ROI
Meters and Monitors .5 -
Lighting 2.2 45%
Controls 2.3 43%
Motors & Drives 2.4 42%
HVAC 3.6 28%
Building Automation 5.9 17%
Source: Energy Cost Savings Council
 

Energy efficiency, environmental impact reduction and improved employee productivity and well being are all important, but a reasonable return on investment is a critical component to any project. As shown in the table, the average return on investment varies based on the type of project being undertaken. When analyzing total return on investment, the following components should be considered:

  • Product cost
  • Energy savings
  • Incentives/rebates available
  • Maintenance cost savings
  • Product life
  • Disposal/recycling cost reduction
  • A/C Savings (where applicable)

To support your total return on investment analysis, consideration should also be given to ‘soft’ returns such as productivity improvement and reduction in environmental impacts such as CO2 emissions and hazardous material reduction. The cost of waiting should also be calculated and any financing alternatives should be considered. You may find that your financing options balance cost savings with financing payments resulting in a self-funding project. Let us show you how implementing energy-efficient solutions can save you money. Are you ready to see more green? Contact your Graybar representative or call 1-800-GRAYBAR.