To get energy efficiency upgrades carried out, the first step is to present a sound financial case to the decision-makers in your organisation to get funds approved. Communicating only the capital cost of an upgrade is like having a winning lottery ticket, but forgetting to collect it. Money spent on upgrades which reduce energy consumption gets paid back by savings in energy costs. And the energy savings continue to accrue. Therefore, it is important the decision-makers in your organisation understand the long term benefits. The best way to communicate this is with quantified information.

By utilising the resources in this Manual, you will be able to create a Financial Report and Summary which set out project details with capital costs, energy savings, rates of return and greenhouse implications to present to your decision-makers. You can use the following template as a guide to create your own Financial Report, or you can go to the Financial Savings Calculator to insert the relevant information and print the report out. The following information, which corresponds with sections of the Financial Report next, is required. The price being paid for energy. You should note that your bills do not show the average price your organisation is paying for electricity or gas. For example, you might pay four cents per kilowatt hour, but when demand and usage charges are added into the equation, the average cost would be much higher, eg. seven cents per kilowatt hour. Capital Cost. Quotes might have already been obtained or estimates can be made. If not, they should be obtained from suppliers or from details of work already carried out. Energy Savings. Using the calculators provided for the various technologies and systems, calculate your energy savings and insert them into the Financial Report. Alternatively, use savings information provided by suppliers.

Indirect Energy Savings. This refers to an increase in energy savings. This is due to another energy consuming system using less energy as a result of the proposed upgrade, e.g. a lighting upgrade will reduce the heat load of a building which in turn will reduce the amount of energy required by the air-conditioning system to cool a building. If you are using the web calculator, the calculations are automatic. Otherwise, you need to do the calculations as shown in the table. Other Annual Costs. By using equipment that lasts longer or by improving the way a system works, replacement or maintenance costs can be reduced. For example, installing compact fluorescent lamps is a double saving. Not only do the lamps last longer, but you also save by not having to replace them as often.