Measuring the Return on Energy Efficiency Investments
In a period of slower economic growth, businesses are continually looking for sound investments. In these times, the old adage, a penny saved is a penny earned has even more meaning. With that in mind, here’s a look at the return on investment of energy efficient equipment.
First, in your operation, what equipment uses substantial amounts of electricity? These might be things like heating, hot water, refrigeration, lighting, motors and compressors, among many others.
While the evaluation of specific equipment purchases requires some expert advice, the financial test remains simple. What is the payback period? In determining savings to your business and whether they justify the investment, we recommend looking at the following areas:
1. Electricity Savings: What is the annual savings from the reduction in electricity use?
2. Maintenance: Will the new equipment cost less to maintain? Examples include changing light bulbs every few years versus monthly, or a more reliable refrigeration unit that requires fewer repairs.
3. Operational Benefits: Will the new equipment provide other benefits such as improved comfort, or better lighting? Or will it enable other efficiencies, such as faster processing, or the ability to ramp up or down as needed?
4. Lifetime of the Equipment: How long will you have the benefits of the new equipment?
5. takeCHARGE Rebates: Can I receive takeCHARGE rebates for my project? These help reduce the project costs, and typically reduce paybacks by a year.
Apply these savings against the capital cost for the equipment, as well as the cost of borrowing. How long will it take to break even? If an investment in energy efficiency looks like a winner, how do you manage the upfront capital cost of equipment against the savings that you’ll receive over the coming years? Many businesses and organizations opt for bank financing to match up monthly savings against the cost of the equipment.
takeCHARGE Energy Efficiency Experts are available to help you evaluate your options. They can help you identify areas for potential savings and also provide information on the takeCHARGE custom rebates available. We offer up to $50,000 in rebates for qualifying projects. Ensure you contact takeCHARGE prior to beginning any upgrade to ensure your project qualifies.
In addition to consulting around custom solutions, takeCHARGE also supports off the shelf solutions such as LED wall packs, thermostats, occupancy sensors, T8 and T5 lighting and LED exit signs.
takeCHARGE offers solutions for a wide range of sectors, including:
• Food and Beverage
• Fish Processing
To get started call 1-800-663-2802, or visit TakeChargeNL.ca!