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Return on Investment (ROI)

Break Even:

Break Even is defined as the number of months it takes to allow the savings completely recoup the cost of the GESPER system. This calculation can depend upon a number of factors:

  1. Is the unit being installed $999 plus tax, or is the cost higher due to more equipment being required?
  2. What is the actual savings? Is it the 10% minimum guaranteed kWh savings that is experienced, the 19% median kWh savings that most people experience, or is it more?
  3. What is your average monthly kWh usage and cost for that without the GESPER system installed?
  4. Is the rate (cost per kWh) that you are being charged by the electric company constant?

Break Even is calculated using the following formula:
Break Even (# of months) = Cost of the GESPER System / Monthly Savings in Electric Cost.
Monthly savings is the calculated reduction in kWh's used over a period of 1 month, utilizing the IPMVP formula.

 

Return on Investment:

Return on Investment is represented as a percentage and is the same calculation that is utilized on any investment. There are two calculations, total return on investment over a period of time and the annualized return on investment over the same period of time. This calculation depend again on the same four factors from the above Break Even calculation (GESPER Cost, Actual Savings, Usage without GESPER, Rate).

The formula looks like the following:
Total ROI (%) = (Total Savings of kWH ($) - Cost of GESPER System ($) / Cost of GESPER System ($)
Annual ROI = Total ROI % / Number of Years

 

Summary of Break Even and ROI calculations

Residential:
For a residential dwelling whose electric bill is currently $250, the break even even is less than 43 months at the guaranteed 10% min kWh savings and less than 23 months at the 19% median kWh savings. Of course if your savings is above the median kWh, then your break even will be even sooner. The ROI at this savings calculates to be 8% to 36% annually.

For a residential dwelling whose electric bill is currently $500, the break even even is less than 22 months at the guaranteed 10% min kWh savings and less than 12 months at the 19% median kWh savings. The ROI at this savings calculates to be 36% to 87% annually.

Click HERE to view a calculation's chart for Residential Properties whose electric bill is currently between $250 to $500 per month.

Commercial, Business, and Industrial:
Due to the fact that the initial cost estimate is based upon a 11.75% of the current annual electric bill total, each commercial, business, or industrial installation has the same break even and ROI. At the 10% guaranteed minimum kWh savings, the break even is just over 30 months and the annual ROI is 20%. At the 19% median savings, the break even calculates to be just under 16 month and the annualized ROI is 56%. Of course if the savings is above the median kWh, then the break even will be even sooner and the ROI will be even greater.

Click HERE to view a calculation's chart for Commercial, Industrial, and Business whose electric bill is currently between $800 to $90,000 per month.