Payback Time Flashcards
1
Q
What is the equation for payback time?
A
payback time (years) = cost of installation (£) ÷ savings per year in fuel costs (£)
2
Q
Give an example…
A
Question
The double-glazing for a house costs £3,000 but saves £150 per year in fuel costs. What is its payback time?
toggle answer
Answer
payback time = 3,000 ÷ 150 = 20 years
3
Q
What is payback time?
A
The payback time of an energy-saving solution is a measure of how cost-effective it is.
