Written by: Nikki Burton
Are you one of the many companies that run on a fiscal year cycle that begins anew July 1, 2021? Are you reviewing your capital improvement plans for the year while also engaging staff with return-to-work plans and taking extra measures to ensure your buildings are safe? Like many others, you may feel that the list of to-dos feels longer than the hours in a day allow for. This is where we come in! Setting aside time to review your capital improvement plans (CIPs) to see which upgrades, replacements, retrofits, or even major renovations could have energy savings potential can help you save money over time.
When it comes to energy-saving projects, there is a cost associated with doing nothing. Why not work with someone who can help you review those CIPs and identify which projects could have an energy efficiency purview?
Still not convinced? What if an analyst could help you identify the net present value or the lifecycle costs for the equipment you have in mind, and then help you garner an incentive to make the purchase even more affordable? Our team routinely helps folks do just this. We like to make your job easier - helping you save on energy costs year over year is a perk of the job.
Using net present value (NPV), we take into account the time value of money (TVM) and assume that today’s dollars are more valuable than in the future. NPV allows you to communicate with your team more effectively. It also allows you to demonstrate the lifecycle costs associated with a specific piece of equipment. The lifecycle cost captures the true cost of ownership and tends not to overinflate a project’s savings. Lifecycle costs take into account the purchase costs, delivery, installation, energy costs, maintenance costs, and decommissioning. Often, you can solidify the cost savings over the equipment’s useful life by focusing on the energy costs and maintenance costs.
This approach tends to align nicely with incentives offered by utilities that encourage folks to purchase higher-efficiency pieces of equipment. Thus, NPV and lifecycle cost give insight into the “big picture,” helping you win over anyone you might not yet have convinced on energy-saving projects.
At this point, what do you have to lose? Why not reach out to our team and see how many of your to-dos we can help you cross off your list!
Email us at info@waypoint-energy.com to connect with us and learn more.