Return on Investment (ROI)

info@eco-nex.com
eco-nex technology = sound eco-nomy + sound eco-logy                                                   

Introduction to ROI

ROI is important to any individual or organisation.  In order to benefit from renewable energy technologies such as the Solar-Dish, the Wind-Turbine, the Ground-Source-Heat-Pump or the Stirling Engine, one must first pay a capital cost.  ROI is determined as the time taken to recoup the value of the capital cost.  In short, the ROI for eco-nex energy products is actually almost instant.  See Instant ROI for the reasons why.

Why pay more just because it is eco-technology? 

Some eco companies will try to explain to their customers that they should NOT be interested in ROI.  These companies assume that if one is concerned enough about the environment, that this should be reason enough to buy any eco technology.  Whilst this may be fine for a tiny fraction of the population, the vast majority of buyers fail to see why they should pay a premium for choosing an eco technology.  We believe that they are right – why should they?

How do eco-nex energy products provide a virtual instant ROI? 

Put simply, any additional improvement to a property that has a perceived value, provides an incremental rise in the value of that property. Whilst property prices may rise or fall, the general trend has been a steady increase in the value of property.  If a property has land or gardens, this will add value to the property.  Today 9/10 properties in the UK have central heating.  This was not installed by property owners on a whim, but was installed to provide increased functionality and to increase the value of the property. 

Consider for a moment that practical improvements to a property such as landscaped gardens, central heating or double-glazing all add approximately 10% to the value of a property.  How much will eco-nex energy technologies such as the Solar-Dish, the Wind-Turbine, the Ground-Source-Heat-Pump or the Stirling Engine add to the value of a property?  Ignore for the moment any payback in terms of reduced impact on the environment or reduced utility bills.  Whilst this site is aimed primarily at commercial enterprises, consider the simple equation below that most commercial, industrial and domestic buyers can relate to immediately: 

      The average value of a domestic property in the UK is currently = £180,000

      The average immediate rise in value for practical improvements  = 10%

      Therefore, immediate ROI for eco technology max spend          = £18,000

Renewable technologies from eco-nex such as micro wind turbines start from under £1000 and associated percentage rises in property value can be achieved.  Similarly, large properties such as Industrial or Business sites can achieve associated rises in property values. 

In short, the addition of any practical improvements to a property can be immediately reflected in the value of the property.  This is before one considers the obvious economic and ecological benefits detailed below: 

Low Carbon Incentives

With the introduction of increasing legislation, Governments across the World are providing major "stick-and-carrot" incentives to reduce carbon emmissions.  Although these vary greatly from country to country, substantial incentives are in place.

Most governments are wielding the stick by levying new taxes on polluters.  Whilst exact figures vary across the World, even a 3% saving on tax is a major incentive for any commercial or industrial operation to choose eco technology.

In terms of governments providing a "carrot", Carbon Credits are now beginning to emerge as a realistic tool to reduce carbon emmissions.  SME's through to major corporations are now beginning to understand that eco-logical purchases are now eco-nomical purchases.

Grants are also available in many countries for businesses to benefit from eco-technologies.  In April 1996, the UK Government anounced a plethora of subtle incentives for SMEs.

In the UK everyone from individuals, to SME's to Giant Corporates can all benefit from choosing eco technologies.  Certainly, we would all like more, but with tax breaks, grants and rapid ROI on property values, how can anyone justify not buying eco technologies?

Rising Fossil Fuels Prices

When was the last time an International Television Station announced "Fuel Prices set to plummet for the next decade"?  What is the likelihood of ever seeing this?

Oil and gas reserves around the planet are running out rapidly.  Some economists are even beginning to say that previous estimates of 50 more years of carbon-based fuels was a somewhat ambitious forecast.

The last decade has witnessed a steadily increasing demand for water and energy, resulting in  blackouts and droughts across the World.

For the past decade, utility prices have increased year on year.  Major utility companies are predicting that the costs to update and increase production of water and energy will only mean further price rises to the end users.

China's commercial and industrial output is expanding at a phenomenal rate.  Do you believe that this will mean we have 50 years left of fossil fuels?

It is nigh on impossible to predict at this point, how much the price of water and energy will increase to over the next decade.  What appears certain at this point, is that those commercial and industrial enterprises who invest in eco technologies, will be the organisations who will survive and prosper.

Defend your Organisation

Buying petrol or diesel generators used to be the norm, to prevent disruption during any blackout or fuel-shortage.  The capital cost of such equipment has fallen dramatically and has now levelled out at a very low cost.  Is this just due to economies of scale, or are other market forces at work here?

Owning a vast resorvoir of fossil fuel, as protection against grid failure or rising fossil fuel prices, is rapidly becoming a costly exercise.  How long could any organisation seriously hold out during such circumstances?

Now that the cold war has come to an end, many countries around the World are facing new threats from global terrorists.  If energy/water are targeted by terrorists, will a set of diesel generators really meet your demands?

Installing eco-energy products is a method of defending your organisation from all these threats. 

eco=low maintenance

Any facilities manager worth his salt, knows that a capital cost on new equipment that is low-maintenance is far more economical than cheap capital equipment with a high-maintenence cost.

All eco-nex technologies are low-maintenance.  If your organisation is cash rich, the wise man invests that capital back in to new technology.  If your organisation is asset rich, the wise man finances the capital purchase.  Either way, the overall cost of eco-technology is lower than fossil fuel technology.

Over the last 20 years, facilites managers have seen the cost of treating water skyrocket.  Water itself is getting more and more expensive.  Few people who have believed 50 years ago that the cost of a bottle of water could be more than the equivalent amount of petroleum.

Many people who look after water treatment at their properties are becoming concerned about the escalating cost of chemical treatments; especially as these chemicals appear to be having less and less effect.  Cheap chemical injectors were sold in the past alongside cheap chemicals.  Now many people are concerned that the maintenance costs are spiralling out of control.

Fossil fuel boilers and calorifiers have become cheaper and cheaper over the last decade.  Yet as they become more and more "tuned" to try and get more energy for less fossil fuel, maintenance issues increase.  As with water, the cheap capital purchase of equipment is now rapidly being outweighed by the escalating costs of fossil fuels.

In essence, eco-technologies are often very simple solutions.  Simple generally means easy and cheap to maintain.  Sunshine and wind are free.  Armed with these facts, who would not want the ROI of eco technology?

Future Energy

The leading World Economists & Scientists are predicting a very different future for energy.  The new vision is one of a combined centralised/decentralised system.  Each building will no longer be just an energy user, but an energy provider.

The new vision for energy is a National and International Energy Grid.  This Energy Grid will be connected to individual buildings and sites, that both take and give energy to and from the  Grid.  At any given time in any given country or continent, the wind is blowing somewhere and the Sun is shining.  Global Experts have already calculated, that wind energy alone from around the Globe, would provide more than 10X the energy we already consume as a planet.

Conclusions

There are so many good reasons from an eco-nomic point of view to choose eco-logical solutions.  If ROI is important to you, then choose eco-nex technologies, the natural solution.