Financial Analysis of Energy Efficiency Projects I

Rising energy prices, dwindling resources and environmental impacts are headline news for today’s business owners. Energy efficiency projects have been shown to be low risk, high return investments. Financial analysis is key to getting your project approved by decision makers. If your project is presented using the language and terms they recognize, you will be off to a good start. Therefore energy managers require a thorough grasp of how economic analysis is used to evaluate return on investment. This enables you to compare and prioritize projects, and gain management approval. This course stresses the use of simple financial terminology when presenting projects for approval. In addition, we will learn to determine simple return on investment and payback period of a project and construct a cash flow table and obtain the discounted payback, net present value and internal rate of return of a project. We will end with an explanation of lifecycle costing and its importance when attempting to gain project approval.