What is simple payback?
Simple payback is a common term used to determine if expenditures for energy conservation measures are justified and to prioritize them. Simple payback is the ratio of the cost of identifying and implementing a project to the annual savings resulting from the project. Or, put another way, it is the amount of time it takes for the savings from a project to pay for installing the project.
Simple payback is a common term used to determine if expenditures for energy conservation measures are justified and to prioritize them. Simple payback is the ratio of the cost of identifying and implementing a project to the annual savings resulting from the project. Or, put another way, it is the amount of time it takes for the savings from a project to pay for installing the project.
