Question: Question 4 An energy efficiency project is expected to save 10,000 kWh annually and 2 kW of demand. The cost of electricity is $0.10/kWh and
Question 4
An energy efficiency project is expected to save 10,000 kWh annually and 2 kW of demand. The cost of electricity is $0.10/kWh and $7/kW-month of demand. The energy efficiency project is expected to cost $5000 to implement and will last for 15 years. What is the simple payback of the project?
Question 5
For the same project in Question 4, what is the net present value of project at a 10% discount rate (see page 168 of your textbook for compound interest factors). Be sure to include a basic cash flow diagram.
Question 6
Research some of the most common new construction or green building labels (ex. LEED, ENERGY STAR New Home). Compare and contrast these common labels. Which label or labels do you think is most helpful in encouraging builders to adopt energy efficient building practices. Defend your assertion.
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