IAPMO Symposium - How to Calculate ROI's

2010 IAPMO / WPC Emerging Technology Symposium - May 11-12, 2010

Troy Aichele

Aichele and Associates, LLC May 12, 2010

How to Calculate ROI’s for Water

Conservation Fixtures,

Equipment and Systems


Objectives

Learn the importance of ROI’s for building

owners

Learn what is necessary to accurately calculate

ROI’s for water efficiency upgrade projects

Learn how to effectively calculate water

efficiency upgrades ROI’s


Importance of ROI’s

1. 5 Year Paybacks represent a 20% return

2. Nothing will move forward without making

financial sense

3. Easier to Sell

4. Connects environmental responsibility with

smart business

5. Easier to gain upper management approval


ROI Calculation Requirements

1. Water, Waste, Natural Gas and Electrical Utility

Costs

2. Fixture / Equipment Counts

3. Fixture / Equipment Use Rates

4. Facility Work Days and Occupancy

5. Know Facility Hot Water Creation Method

6. Efficiency Upgrade Installation Cost

7. Estimated Annual Utility Rate Increase

8. Rebate Potential


Utility Costs

Obtain Utility Rates (1 Year Minimum)

– Water and Waste (CCF)

– Electric (kWh)

– Natural Gas

(therm)


Fixture / Equipment Counts

Walk Campus

– Obtain facility drawings

– Reserve enough time

(Depends on size of building)



Use Rates

Water Closet:

– 3 / Day (Women)

– 1 / Day (Men)*

Urinal:

– 2 / Day (Men)

Faucets:

– 1 Minute / Person / Day

Shower Use:

– 8 Minutes / Day

*3 / Day if no urinals


Use Rates



Measuring with Bucket and

Stopwatch

Measure twice

and average

Measure 10% of

similar devices

throughout facility


Plumbing Fixtures


Tank-Type Water Closets


Flushometer Water Closets


Dual-Flush Flushometer

Retrofit Kits


Urinals


Faucets


Showerheads


Kitchen Spray Nozzles


Plumbing

Equipment


Major Equipment

Record Manufacturer,

Model Number, Serial

Number, Flow Rates

and Electrical

Information

(especially booster

heater) and use rates



Ice-Makers, Air-Conditioning and

Refrigeration Equipment


Laundry Machines

http://www.ozonewatertech.com/


Medical Vacuum Pumps


Plumbing

Systems



Boiler Stack Economizer

Water Recovery

Cost: $1,090

Water / Sewer Savings: 720 GPD

Return on Investment: 5 Months


Installation Cost

Rebate

Potential

Utility Rate Trends

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

2002 2003 2004 2005 2006 2007 2008 2009

Year

PeakWater$/CCFSewer$/CCF

10% 10 %

Utility Rate Trends…

Waste

Water


The Cost of Water and

Sewer / 100 Gallons Olympia, WA: $1.00

San Diego, CA: $1.38

Boston, MA: $1.05

El Paso, TX: $0.60

Omaha, NE: $0.53

Geneva, Switzerland: $1.95

Glasgow, UK: $2.86

Las Vegas, NV: $0.80 Source: “The World’s Water 2008-2009” by Peter H. Gleick

Utility Rate Trend Impacts






Activity





Rainwater Harvesting Assumptions:

– $1 / Gallon Installed

– System Size: 10,000 Gallons

– 50” Rain / Year

– 2,500 SF Roof

– 0.62 Gallons / SF of Roof / Inch of Rain per Year

– 85% Collection Efficiency

– Water Cost: $0.0025 / Gallon

– Sewer Cost: $0.0075 / Gallon

What is the ROI?


Objectives

Learn the importance of ROI’s for building

owners

Learn what is necessary to accurately calculate

ROI’s for water efficiency upgrade projects

Learn how to effectively calculate water

efficiency upgrades ROI’s


Real Estate

IAPMO Symposium - How to Calculate ROI's