Energy-At-Risk Financial Analysis Tool

Once you’ve submitted the proper inputs, the modeling tool automatically calculates the project’s potential results. The workbook contains nine different economic metrics:

• Simple metrics
  • Simple payback
  • Return on Investment (ROI)
  • Life Cycle Cost
• Measures that incorporate the time-value of money
  • Net Present Value
  • Internal Rate of Return
• More sophisticated metrics that look at the cost of not implementing a particular energy efficiency measure
  • Conserve-or-Buy
  • Energy at Risk
  • Break-Even Analysis

The tool produces a summary page that displays all metrics and compares them to your financial performance targets provided. This provides a broader perspective on project performance. In presenting the information to decision-makers, however, it’s best to focus on the metrics that are most important to your business.

1. Enter the simple inputs for your project such as energy use, capital costs and operating and maintenance costs. There also is a section to enter the financial performance targets.
2. The modeling tool automatically calculates the project’s financial performance results.
3. Each worksheet provides pros and cons of the individual financial metrics and the formulas used to calculate your projects results. Use this information to decide which metrics best fit your project and situation.
4. See the summary page that displays all metrics and compares them to your financial performance targets provided.
5. Finally, label your analysis, record project specifications or note key assumptions, under the Cover tab.

Refer to the tool and other resources to help you better understand the process, interpret results, overcome challenges and assist in making a case to management. We've also included a simple example project for pump optimization. If you have any questions, call us at 855-839-8862.

Energy-At-Risk Financial Analysis Tool (XLS)

Presentation (PPT)

Pump optimization example (DOC)