Energy Efficiency Project Prioritizer
Prioritize energy-efficiency projects by real dollar savings among those that clear your payback target, not by payback speed alone.
Project A
Project B
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Based on your results, these related decisions are available.
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How this works
Payback period is a screening threshold, does the project clear an acceptable window, not a ranking metric once multiple projects already clear it. Among projects that both clear the target, the one with the larger absolute annual savings delivers more real value.
Key terms
- Payback target: the maximum acceptable payback period, a pass/fail screen, not a ranking.
Assumptions
- Energy savings are stable across the evaluation period
Limitations
- Two named projects, not an open-ended portfolio ranking
Sources
Standard capital-budgeting project-prioritization practice (payback as screen, not rank).
Worked example
Project A's 1.0-year payback looks like the clear winner against Project B's 1.67 years. But Project A only saves $5,000/year while Project B saves $60,000/year, both clear a 2-year target, so the real priority is Project B.
Common use cases
- Choosing between two energy-efficiency projects competing for the same budget
- Avoiding a payback-only ranking that misses the bigger real-dollar opportunity
- Screening a slate of projects down to the ones worth funding