Tool description for Business Case and Multiple Benefits tool
The Business Case and Multiple Benefits tool provides a calculation support for financial evaluation and comparison of energy efficiency measures which have previously been identified by energy scans or audits, other self-assessment tools, or best practice examples. The tool allows for considering multiple (non-energy) benefits of the measures – either qualitatively or as monetary values. The output of the tool is summarized in a business case template.
The tool was developed within the GEAR@SME project.
The target group for this tool is SMEs that want to compare energy measures, prioritize between them, and decide which ones should be implemented
What’s included?
- Calculation of Payback Period, Net Present Value and Internal Rate of Return based on user input about investment costs, energy use, energy prices etc
- Checklist for multiple benefits (MBs)
- Possibility to provide quantification of MBs and include in profitability calculation
- Output in business case template
Based on the output, the SME can decide which measures to put on their energy efficiency action plan, and start contacting suppliers.
Required input:
- Suggestions for energy measures with their estimated impact on energy use
- Investment and operating costs for the measures
- Other potential impacts of the measures
- Assumed energy prices
Suggestions for energy measures may be identified in different ways. Self-assessment tools for energy analysis may guide you to areas with a potential for improvement, and measures for this area may be found in the best practices database. You may also find inspiration from successful examples shared by other SMEs or invited experts in your network. Potential energy efficiency measures are also be identified as a result of an energy scan or audit.
The tool can be used in different ways
The tool can be used by SMEs themselves. This is likely to require some support and guidance. A so-called Trusted Partner (a neutral actor who drives the development of a local energy collective and supports the SMEs in tasks related to energy efficiency) may be able to provide this support, or arrange support from other advisors.
The tool can be used by a Trusted Partner, who can fill out the tool with examples of energy efficiency measures that are of interest to many SMEs in a local energy collective. The Trusted Partner can then share the business cases for these measures with the interested SMEs.
