Certified Energy Auditor Certification Certified Energy Auditor Economic Analysis and Financing Questions and Answers 2

Question 1

An energy auditor calculates that a lighting retrofit will save $12,000 annually and costs $48,000 to install. What is the simple payback period?

Accepted Answer

4 years

Answer

2 years

Answer

3 years

Answer

5 years

Question 2

Which financial metric accounts for the time value of money when evaluating energy conservation measures?

Accepted Answer

Net present value

Answer

Simple payback period

Answer

Return on investment percentage

Answer

Annual energy cost savings

Question 3

What does a savings-to-investment ratio (SIR) greater than 1.0 indicate about an energy project?

Accepted Answer

The project's discounted savings exceed its discounted costs

Answer

The project will lose money over its lifetime

Answer

The project breaks even exactly

Answer

The project requires additional financing to be viable

Question 4

In an energy performance contract (EPC), who typically assumes the risk that projected energy savings will not be achieved?

Accepted Answer

The energy service company (ESCO)

Answer

The building owner

Answer

The utility company

Answer

The equipment manufacturer

Question 5

Which financing mechanism allows a building owner to fund energy improvements through an additional charge on their property tax bill?

Accepted Answer

Property Assessed Clean Energy (PACE)

Answer

On-bill financing

Answer

Power purchase agreement

Answer

Equipment lease financing

Question 6

When performing a life-cycle cost analysis for competing HVAC systems, which cost category is typically the largest over a 20-year analysis period?

Accepted Answer

Energy and maintenance costs

Answer

Initial equipment purchase price

Answer

Installation labor costs

Answer

Disposal and decommissioning costs

An energy auditor calculates that a lighting retrofit will save $12,000 annually and costs $48,000 to install.What is the simple payback period?