Accelerating applied sustainability by utilizing return on investment for energy conservation measures
International Journal of Energy, Environment and Economics
Many energy conservation measures (ECMs) that utilize energy more efficiently than standard devices or practices will save money in the long term; however, decision makers often fail to deploy ECMs because of what is viewed as a prohibitively long payback time. This paper provides a graphical tool to determine the return on investment (ROI) of any ECM from only the simple payback and device lifetime, which corrects this common economic error. Utilizing this method will encourage the increased deployment of energy efficiency and renewable energy technologies, while improving the economic performance of the companies and individuals that utilize the method. © 2009 Nova Science Publishers, Inc.