How does EPA propose to determine the 5-year payback?
WEST will determine the 5-year payback based on algorithms for estimating simple paybacks of waste energy projects using information on waste energy available and current energy prices provided by each site in the Survey, and rules of thumb for waste energy recovery technology performance and cost. The simple payback for a project is calculated by dividing the total installed cost of the project by the estimated annual savings of the project. The annual savings are calculated using information about the purchase price for electricity at the site, the projected amount of electricity generated by the project, and the operation and maintenance costs of the project. The payback calculation will also include the financial incentives included in EPCA Section 373.
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- How does EPA propose to determine the 5-year payback?
