Web Tool for Better Financial Calculations Launched

Previous experiences indicate that different conclusions will be drawn, about whether an investment is profitable or not, depending on the calculation methods used. The majority of energy efficiency measures presented in energy audits is calculated with simple payback-time methods not taking in consideration technical lifetime of the investment.

The project has developed a web tool that that makes it easy to do different types of financial calculation, just by adding a few parameters about the investment.

The tool calculates with net present value method, annuity value method, internal rate of return except for pay-back time. The tool can be found on this link: Financial Calculations

A group of private building managers was trained in using the different calculation methods. Conclusions was the need to use complementary financial calculation methods. When using net present value method, investments with longer lifetime will benefit. In many cases the use of internal rate of return will show that many more measures is profitable than when using only pay-back-time.

A new standard for presentations of measures in energy audit reports has been implemented in Dalarna with the requirement to present alternative financial calculation results for each measure, at least net present value except of pay-back-time (and preferable also LCC and internal rate of return). The project is now working to influence national policy level for implementing the same standard.

About EFFECT4buildings:

EFFECT4buildings is implemented with the support from the Interreg Baltic Sea Region Program 2014-2020 (European Regional Development Fund) and Norwegian national funding. The aim of the project is to improve the capacity of public building managers in the Baltic Sea Region by providing a comprehensive decision-making support toolbox with a set of financial instruments to unlock the investments and lower the risks of implementing energy efficiency measures in buildings owned by public stakeholders. 

For more information: http://www.effect4buildings.se

Text author: Marit Ragnarsson, EFFECT4buildings Project Manager, Länsstyrelsen Dalarnas län