Business and building owners often face a dilemma when considering replacing or updating their HVAC system. Although operating an energy-efficient HVAC system saves money for business and building owners in the long run, many are concerned by significant first cost. Too often the recommendation is to retrofit an existing building with energy-efficient HVAC in order to save money on energy costs, but then the question arises — how to fund the investment?
The considerations: Would a quick fix or band-aid on the system do for the time being? Would a very low first cost make sense? The owner is faced with the choice of coming up with the required capital or continuing to face increased operating costs and future repairs. The return on investment (ROI) or simple payback period (SPP) on new, energy-efficient systems may take a bit longer, but the equipment will perform more reliably, provide a better environment and lower operating costs both short and long term. Most business owners will assume that funding for energy-efficient upgrades must come from dipping into their equity in the facility, or from an outside funding source such as a bank loan.