The Challenge
A facility approved ₹24 lakhs for a suite of efficiency projects: VFD retrofits (₹8 lakhs), HVAC upgrades (₹10 lakhs), LED lighting (₹4 lakhs), compressed air system repairs (₹2 lakhs). No one tracked actual electricity savings or return on investment.
What Became Visible
Post-implementation electricity monitoring revealed: (1) VFDs reduced pump energy 22% (estimated to save ₹3.2 lakhs/year). (2) HVAC upgrades reduced cooling 31% (estimated to save ₹4.8 lakhs/year). (3) LED lighting reduced lighting consumption 68% (estimated to save ₹1.2 lakhs/year). (4) Compressed air repairs reduced leakage from 28% to 6% (estimated to save ₹2.2 lakhs/year). Total actual electricity savings: ₹11.4 lakhs annually.
What Changed
Energy baseline (pre-project) and post-project consumption tracked. Savings attributed to each project. ROI calculated annually and communicated to stakeholders.
How it worked: Before-and-after electricity consumption was compared. Savings per project were isolated using engineering estimates validated by actual data. ROI was calculated as (Annual Savings) / (Project Cost) = 48% annual return. This 2.1-year payback period was tracked and reported to leadership.
Results
efficiency projects
measured post-implementation
48% annual ROI
after payback
Energy efficiency projects are financial investments with measurable returns. ROI tracking justifies continued investment and guides future project selection.
Operational Reality
Most facilities find that their energy efficiency projects achieve 2–4 year payback periods, with annual savings equaling 40–60% of project cost.