Commercial Kitchen Equipment worked example

Energy Efficiency Payback with energy-efficiency upgrade capital cost of 96,300 $: a worked example

Push energy-efficiency upgrade capital cost up to 96,300 $ and the picture changes. This example computes every intermediate figure at that operating point. screening energy-efficiency investment payback for kitchen equipment

The inputs for this scenario

  • Energy-efficiency upgrade capital cost: 96,300 $ (raised for this scenario; the documented default is 38,500)
  • Annual kitchen utility bill savings: 9,200 $ / yr (unchanged)
  • Annual added service and maintenance cost: 1,200 $ / yr (unchanged)

Working through the calculation

  • Applying the documented formula (Net annual energy efficiency payback savings = annual kitchen utility savings - annual service and maintenance cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 12.04 yr for energy efficiency payback payback period, the number this scenario is built around.
  • At this operating point the engine returns 8,000 $ / yr for net annual energy efficiency payback savings.
  • At this operating point the engine returns 96,300 $ for energy-efficiency upgrade investment.
  • At this operating point the engine returns -56,300 $ for five-year net energy efficiency payback cash impact.

How this compares with the baseline

  • Against the tool's baseline example, where energy-efficiency upgrade capital cost sits at 38,500 $ and the headline result is 4.81 yr, this scenario comes in 150% above the baseline at 12.04 yr.
  • It computes net annual savings (utility savings minus added maintenance) and divides the upgrade investment by that net to give a simple payback period in years. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • energy efficiency payback payback period: 12.04 yr (headline result)
  • net annual energy efficiency payback savings: 8,000 $ / yr
  • energy-efficiency upgrade investment: 96,300 $
  • five-year net energy efficiency payback cash impact: -56,300 $

Run it with your numbers

  • Every input above is editable in the live Energy Efficiency Payback calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.