Economic Analysis of Energy Upgrades Based on Tolerable Capital Cost
Publication: Journal of Energy Engineering
Volume 141, Issue 3
Abstract
To evaluate the economic feasibility of energy efficiency or renewable energy upgrades, a variety of tests are used such as payback period, cost-benefit ratio, and return on investment. All of these tests require an estimate of the capital cost of the upgrade. However, it is not always possible to reliably estimate the capital cost of a potential energy upgrade. To deal with such situations, an alternative approach is proposed that involves the calculation of the tolerable capital cost (TCC) of the upgrade. The use of the TCC approach to evaluate economic feasibility is demonstrated with a case study involving photovoltaic panel installations in Canadian houses.
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Information
Published In
Journal of Energy Engineering
Volume 141 • Issue 3 • September 2015
Copyright
© 2014 American Society of Civil Engineers.
History
Received: Jan 18, 2014
Accepted: Mar 24, 2014
Published online: Jun 3, 2014
Discussion open until: Nov 3, 2014
Published in print: Sep 1, 2015
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