Cost Effectiveness Screening Method

Method for calculating cost-effectiveness for measures or project

Data Type: 
Constrained List
Category: 
Unit of Measure: 
None
Sector: 
Commercial, Residential, Multifamily
List Options Option Definition Unit of Measuresort descending
None None None
Not applicable Not applicable None
Simple payback The length of time required for an investment to pay for itself. None
Return on investment A measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. ROI is the ratio of the benefit (return) of an investment to the cost of the investment. None
Life cycle cost Measure of cost effectiveness used to validate this project. Value in $ entered directly. None
Net present value Net Present Value (NPV) of a measure or a project None
Internal rate of return Internal rate of return (IRR) of a measure or a project None
Levelized cost of energy The Levelized cost of energy (LCOE) is the total cost of installing and operating a project expressed in dollars per kilowatt-hour of electricity generated by the system over its life. Can be calculated with System Advisor Model, similar software, or through a simplified calculation at http://www.nrel.gov/analysis/tech_lcoe.html. None
Savings to investment ratio SIR is a dimensionless measure of performance that expresses the ratio of savings to costs where the numerator of the ratio contains the operation-related savings and the denominator contains the increase in investment-related costs None
Modified internal rate of return The modified internal rate of return (MIRR) formula adds up the negative cash flows after discounting them to time zero using the external cost of capital, adds up the positive cash flows including the proceeds of reinvestment at the external reinvestment rate to the final period, and then works out what rate of return would cause the magnitude of the discounted negative cash flows at time zero to be equivalent to the future value of the positive cash flows at the final time period. None
Net Operating Income Net operating income (NOI) is a calculation used to analyze real estate investments that generate income. Net operating income equals all revenue from the property minus all reasonably necessary operating expenses. None
Total Resource Cost Test Total Resource Cost (TRC) Test measures the net costs of a demand-side management program as a resource option based on the total costs of the program, including both the participants' and the utility's costs. None
Life cycle Qualifier for calculations performed for the life cycle of equipment or a facility None
Other Other None
Unknown Unknown None
Term ID: ca919bca-c24a-482c-8c0c-7f7f343c21ae
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