ROI (return on investment) is a key figure that expresses the relationship between the profit of a project or investment and the cost of capital. It is an important factor in determining whether an investment is worthwhile or not. ROI is also expressed as a percentage and calculated using the formula ROI=(profit-investment costs). A higher Roi also means a higher return on investment. Energy-saving projects refer to investments in energy efficiency measures that reduce energy consumption and therefore also costs. In industry, these projects pay for themselves after just 1-2 years. With “normal” investments, it takes around 5-10 years for the projects to pay for themselves. The shorter payback period for energy-saving projects can be attributed to various factors:
- Savings can be realized more quickly through energy efficiency measures and have a direct impact on operating costs.
- Energy-saving projects can often be implemented with low investment costs, which increases profitability
Energy-saving projects also have a positive impact on a company’s image. In this way, a company can show that it is committed to sustainability and environmental protection.
Return on Investment (ROI): Definition, formula, example – [mit Video] (studyflix.de)
