Energy modeling is often used to evaluate energy conservation measure (ECM) payback, calculating the operational energy savings that accrue after an initial capital investment. Energy modeling itself can also be viewed as an ECM, with an upfront cost during design that leads to operational savings. Given that viewpoint, it is interesting to evaluate the cost-effectiveness of modeling. As a rule of thumb, an ECM is considered cost-effective or attractive if its payback is shorter than three years. What is the typical payback of modeling?
Architecture firm HOK calculated the payback of energy modeling—cost of modeling divided by modeled energy cost savings—for a number of their projects. The results? Modeling usually pays for itself in a month or two. Credit: HOK.
| Project Name | % Modeling Fees vs. Gross Fees | Annual Modeled Energy Cost Savings | Payback on Modeling Fees in MONTHS |
|---|---|---|---|
| Office Building | 0.7% | $122,876 | 2 |
| Office Building | 0.5% | $306,692 | 1 |
| Justice Center | 0.8% | $350,000 | 3 |
| Convention Hotel | 0.6% | $233,791 | 1 |
| Regional Hospital | 2.4% | $3,300,000 | 1 |
| Government Office Building | 3.3% | $186,000 | 4 |
| Government Building 20 | 1.1% | $224,276 | 2 |
| Cancer & Critical Care Tower | 0.6% | $853,013 | 3 |
| Institutional Research Center | 0.6% | $340,000 | 3 |
| Energy Institute | 2.5% | $169,432 | 7 |
| Institutional Research Facility | 1.0% | $302,169 | 1 |
| Science Teaching/Research Facility | 0.8% | $419,599 | 1 |
| Corporate Headquarters | 1.0% | $239,835 | 4 |
See the full article at energy.gov
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