Developing business cases and feasibility studies

An accurate business case is critical to identifying your project's ROI and project payback.


A business case does not have to be long, but it does need to be accurate. 

Lifecycle costs are one essential factor frequently omitted from energy studies and business cases.

Do you take lifecycle costs into account when developing business cases?

Many energy studies don’t consider full lifecycle costs. A good example is compressed air, where ten year lifecycle costs are 12% capex, 12% maintenance, and 76% energy.



Case study:   Large food manufacturer selects a new air compressor
Given a choice between the $400,000 air compressor and the $500,000 air compressor, they chose the $400,000 compressor, without realising it had a 20% higher energy use. 

This meant the cheaper compressor will cost the plant an additional $311,000 over its ten year lifecycle, rather than saving them $100,000.