Estimate rebates, bill savings, and project returns fast. Model caps, taxes, and escalating utility prices. Compare scenarios to choose the smartest upgrade today confidently.
Sample inputs and typical results to validate your entries.
| Scenario | Project Cost | kWh Saved | kW Reduced | Rebate Type | Cap | Paid Incentive | Net Cost | First-Year Savings | Payback |
|---|---|---|---|---|---|---|---|---|---|
| Efficient Lighting | $18,000 | 11,500 | 2.0 | Mixed | $6,000 | $5,250 | $12,750 | $2,120 | 6.0 yrs |
| HVAC Upgrade | $42,000 | 23,000 | 7.5 | Percent | 40% of cost | $12,600 | $29,400 | $5,350 | 5.5 yrs |
| Controls Optimization | $12,500 | 8,400 | 1.5 | Per kWh | $4,000 | $3,780 | $8,720 | $1,570 | 5.6 yrs |
Utility incentives can lower the effective cost of efficiency upgrades by paying for measured savings, demand reduction, or a share of installed cost. Many commercial programs pay roughly 10% to 35% of project cost, while others add fixed participation amounts plus performance payments. Modeling incentives with first‑year bill savings helps rank projects consistently and focus capital on stronger returns. Include fees and taxes for out‑of‑pocket spending.
This calculator converts annual kWh savings into dollar savings using your blended energy rate, and it estimates demand savings using kW reduction multiplied by demand charges and billed months. If you have interval data, use peak‑period impacts rather than annual averages. For early planning, reduce vendor estimates by 10% to 15% and test sensitivity by adjusting rates and demand months.
Programs commonly limit payouts with two caps: a maximum dollar amount and a maximum percent of cost. The effective cap is the smaller limit. Eligibility represents partial approvals or deemed savings adjustments. A bonus multiplier can reflect time‑limited adders. Holdbacks represent amounts withheld until inspection or measurement and verification, reducing the near‑term cash benefit.
Payback uses first‑year savings and net project cost after incentives and taxes. Over longer horizons, NPV discounts future savings and can include escalation in utility prices. A project may show acceptable simple payback but weak NPV if measure life is short or discount rates are high. Discounted break‑even is the first year cumulative present value turns positive.
Use the CSV or PDF export to document inputs, assumptions, and results for budgeting, approvals, and contractor discussions. Record the rebate type, cap rules, and tax treatment so stakeholders understand how incentive value was derived. Before applications, confirm timelines, pre‑approval needs, and eligible equipment lists. Updating rates, caps, and savings supports a repeatable evaluation workflow. Save baseline; model conservative and aggressive cases.
Choose the structure that matches your program: fixed, per kWh, per kW, percent of cost, or mixed. Mixed is useful when you receive multiple components or adders under one approval.
Use the number of months your tariff bills demand charges. If demand is seasonal, enter only billed months. If you are unsure, start with 12 and test a lower value to see sensitivity.
The calculator computes an effective cap as the smaller of the dollar cap and the percent-of-cost cap. Your final paid incentive is the smaller of the calculated incentive and that effective cap.
If incentives are taxable for your situation, taxes reduce the net value you keep. Enter your estimated tax rate to see a more realistic net project cost and payback.
Use your organization’s hurdle rate or cost of capital. If you do not have one, 5% to 8% is a common planning range. Higher discount rates reduce NPV and push break-even later.
Yes. Run a baseline and alternatives, then export CSV or PDF to share assumptions and results. Always verify program rules, eligibility, and measurement requirements before final commitments.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.