HVAC Talk of the Week: Performing an Investment Analysis

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Before physically altering your existing system, you first need to understand the return you expect on the investments you make for optimising your design. In a previous talk, we discussed how we could determine our energy savings when optimising our existing system by looking at an improved hydronic optimisation and a lower supply temperature. We also took a look at the implementation of a heat pump alongside our boiler, and making our energy centre fully electric.

However, all those modifications come with an upfront investment cost. To fully justify your project, you therefore have to perform an investment analysis. This can be done in different ways: for example, you can take a look at the payback period of your investments, but you can also calculate the net present value and the internal rate of return of your project.

Depending on the KPIs, you might need to make a trade off between your future energy savings and your upfront investment costs when choosing your final design.

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Tune in to watch the video now, and discover how the Hysopt software can assist you in your engineering process.

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