Economic and Financial Calculators
Making the business case for energy efficiency-related capital expense requires economic analysis. The tools below will either help you get started or provide a double check against your own internal analysis.
Cash Flow Opportunity Calculator
The Cash Flow Opportunity Calculator helps you make decisions about when and how to finance energy efficiency projects. You will be able to estimate how much new equipment you can finance using anticipated savings, as well whether you should finance now or wait for a lower interest rate. This calculator can accelerate the installation of energy efficiency projects by addressing three critical questions:
- How much new energy efficiency equipment can be purchased from the anticipated savings?
- Should this equipment purchase be financed now? Or is it better to wait and use cash from a future budget to avoid paying interest?
- Will we lose money by waiting for a lower interest rate?
How It Works:
The calculator translates energy savings into dollar figures and shows how energy efficiency projects can improve cash flow.
Who It’s Designed For:
Everyone. It was developed to address the “we don’t have the money” objection that many organizations face when trying to implement energy efficiency projects and will demonstrate that there is a cost of delaying these projects.
Cash Flow Opportunity (CFO) Calculator
Learn more:
- Calculations and methodology
- View a self-guided introductory presentation
Building Upgrade Value Calculator
The Building Upgrade Value Calculator evaluates the financial impacts of energy efficiency improvements to office and warehouse buildings from two perspectives:
- The financial benefits to owners.
- The financial benefits to each individual tenant.
In exploring the costs and benefits of having tenants help fund efficiency projects or capital investments, this tool can help landlords and tenants move beyond the “split incentive” typically assumed to exist in commercial lease arrangements.
How It Works:
By evaluating the expected change in tenant contributions for recoverable owner expenses under a variety of lease types (full service gross, modified gross, triple net – each with customizable tenant-level parameters), this tool calculates the costs and benefits of base building energy efficiency measures for the owner and each tenant.
Who It’s Designed For:
Commercial real estate. Currently the calculator is designed to evaluate the impact on tenant expense reimbursements for common office and warehouse lease structures.