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Financial Analysis

It always pays to do your homework before investing in energy-efficient equipment such as ENERGY STAR qualified products. What products and equipment really work? How much will it cost to install? Where do you find the money? How quickly will you recover your investment? There are many resources to help you get the answers that will work for your business.

Analysis Tools and Resources

Incentives, Rebates and Other Resources

The two most common financial evaluation tools are simple payback and internal rate of return (IRR):

  • Simple Payback: The number of years it takes to recover the cost of the upgrade from the savings.
  • Internal Rate of Return: Compares the financial results of an upgrade against other investments.

Learn more about financial indicators in ENERGY STAR's Buildings Upgrade Manual's Financing Section .

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