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Return on Investment (ROI) Through Energy Management

Updated on December 25, 2009

Management in most business organization is very familiar with the concept of return on investment. It is used by organization to analyze investment or possible investment. In year past, many organizations have considered energy conservation as insignificant because its ROI did not compare with methods to increase production. Energy costs are no longer insignificant in the total financial in the total financial picture of an organization. Inflated energy cost has made ROI for energy use reduction more favorable. Energy costs should now be a major concern for an organization. Many building modification for energy conservation, brought about by good energy management programs, have an excellent return or investment.

Retrofit of Buildings

 When a building is modified in some way, which involves construction or additional equipment, this is referred to as retrofit. Retrofit for the purpose of energy conservation could involve such modification as redesign of a lighting system, changes in heating ventilating and air conditioning (HIVAC) systems adding insulation to roofs and walls, or adding equipments to reduce electrical power demand.

            In considering retrofit of existing buildings, owners and operator should consider making several changes at on time rather than small changes made over a long period of time.


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      Satish 6 years ago

      Nice matter