Summary

There are significant energy savings available to organisations that invest in energy efficient facilities, processes, assets and equipment. However, traditional capital budgeting practices and accounting procedures often do not prioritise energy efficiency as it is considered to be a discretionary investment or it can be difficult for the organisation to account for benefits through reduced operating costs.

This topic discusses some of the barriers to investing in energy efficiency, introduces some techniques to help budgeting for capital investment and describes the key financial appraisal techniques that can be used.

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