How was the Simple Payback determined?
The simple payback is determined by dividing the total cost of installing the new wood-burning boiler system by the estimated annual savings. The annual fuel savings is calculated by subtracting the difference in cost between the existing fossil fuel and the projected wood fuel. The annual fuel savings is reduced by the projected increase in cost for the operations and maintenance of the wood-fired heating system. For boilers less than 2.5 mmbtu, the wood fuel is assumed to be wood pellets. For projects greater than 2.5 mmbtu, the cost of wood chips is used.
