Simple payback definition

Simple payback means the estimated ECM cost divided by the estimated first year ECM energy, operating, and maintenance savings.

Simple payback means the number of years for the projected annual energy or water savings to equal the amount invested in the energy or water conservation measure, as determined by dividing the investment by the annual energy or water savings.

Simple payback means the number of years for the projected annual energy savings to equal the amount invested in the energy conservation measure, as determined by dividing the investment by the annual energy savings.

Examples of Simple payback in a sentence

• Simple payback is not used as a measure of cost-effectiveness as it does not account for the time value of money, the value of energy cost savings that occur after payback is achieved, or any replacement costs that occur after the initial investment.

• Simple payback is the total incremental first cost divided by the annual savings, where the annual savings is the annual energy cost savings less any incremental annual maintenance cost.

• Simple payback is the number of years required for accumulated annual energy cost savings to exceed the incremental first costs of a new code.

• Simple payback period and the Consumer Cash Flow analysis are reported to provide additional information to stakeholders.

• Simple payback period and the Consumer Cash Flow analysis are reported to provide additional information to stakeholders, including states which have established a range of alternative economic metrics.

More Definitions of Simple payback

Simple payback means the am ount of tim e it will take to recover a project’s invest ment through reduced or avoided energy costs. For the purposes of these Program Guidelines, the equation for simple payback is total project costs ($) divided by annual energy cost savings ($/year).

Simple payback means the cost of the Project divided by the fist year's estimated savings resulting from the Project.

Simple payback means the length of time, typically presented in years, required to recover the cost of a measure or project.

Simple payback means the number of years it takes for the projected annual energy

Simple payback means the marginal additional cost of implementing an energy efficiency measure (excluding VAT) divided by the value of the annual energy savings achieved by that measure, where:The marginal additional cost is the additional cost (materials and labour) of incorporating additional insulation and not the whole cost of the work.

Simple payback means the number of years after which an investment will have paid for itself. Simple Payback is calculated by dividing the initial cost of the retrofit by the energy cost savings per year. Those projects with the shortest paybacks are assumed to be the most cost effective. Simple Payback = initial cost of energy retrofit / annual energy savings.

Simple payback means the marginal additional cost of implementing an energy efficiency measure (excluding VAT) divided by the value of the annual energy savings achieved by that measure, where: