Energy Savings Payback Chart

Use this worksheet after the calculator result to record baseline kWh, improved kWh, utility rate, project cost, annual savings, simple payback, and sensitivity assumptions.

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Quick reference table

An energy savings payback chart is a calculator-led planning worksheet. It turns a savings result into a documented comparison before budgeting, rebate review, or project approval.

Energy savings payback worksheet

Energy savings payback worksheet
Item	Record from calculator	Follow-up
Baseline	Current kWh, demand, or cost	Confirm meter or bill period
Improved case	Reduced kWh or operating cost	Document equipment and schedule
Project cost	Gross and net cost basis	Separate optional incentives entered
Payback	Annual savings and simple payback	Run rate and runtime sensitivity

Savings verification lanes

Savings verification lanes
Review lane	Record on worksheet	Why it changes payback
Baseline period	Bill, meter interval, season, occupancy	Savings are weak if the baseline period is not comparable
Measure life	Expected life, warranty, maintenance change	A short measure life can limit useful payback value
Utility rate	Energy rate, demand charge, escalation note	Avoided kWh and avoided cost are not always the same
Approval case	Conservative, expected, and best-case result	Decision makers need sensitivity, not one optimistic number

Formula basis

Simple payback years = net project cost / annual savings.

Net project cost is the cost basis entered after any clearly documented adjustment.
Annual savings is the energy, demand, maintenance, or operating savings entered in the calculator.
Baseline use is the current or reference energy case.
Improved use is the proposed project energy case.

Worked examples

Lighting retrofit payback recordRecord existing kWh, proposed kWh, rate, project cost, entered incentive, annual savings, payback, and the operating schedule used for the comparison.

Compressed-air leak repair screenDocument baseline runtime, estimated avoided kWh, utility rate, repair cost, measure life, maintenance effect, and conservative payback before scheduling work.

Assumptions. Balanced load and line-to-line voltage assumptions behind this chart.

The worksheet is a planning comparison and not a financial forecast or tax position.
Savings can change with utility rates, operating hours, maintenance, equipment performance, and occupant behavior.

Code and standard notes. Planning limits that should be checked before final equipment selection.

Use this chart as a comparison worksheet; verify utility rates, demand charges, equipment manufacturer data, rebate program rules, owner cost assumptions, and finance review before approval.

How to use this chart

1Define baseline and improved casesWrite the existing and proposed energy cases before reviewing savings.

2Keep cost basis visibleRecord gross cost, entered adjustments, maintenance changes, and utility rate assumptions.

3Route project reviewUse the chart to decide whether to request quotes, rebate review, or finance approval.

Worksheet checklist. Record source basis, review gaps, and assumptions before using the chart result.

Capture baselineRecord current kWh, demand, cost, schedule, and source period.
Capture improvementRecord proposed kWh, demand, maintenance savings, and equipment assumptions.
Capture paybackDocument net cost, annual savings, simple payback, and sensitivity items.

Common mistakes to avoid. Review these before turning chart current into an equipment decision.

Presenting simple payback as a complete investment decision.
Mixing monthly and annual savings without labeling the period.
Using avoided kWh without checking demand charges, measure life, maintenance cost, and utility rate basis.

Frequently asked questions

These answers explain how to use the chart without turning a quick reference into a final design decision.

Is simple payback the same as ROI?

No. Simple payback shows time to recover cost from annual savings. ROI and cash-flow review may include discount rate, life, maintenance, and financing assumptions.

Why record sensitivity assumptions?

Small changes in runtime, rate, or project cost can change payback, so the worksheet keeps those drivers visible.