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 It's payback time

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​​​It's payback time ​

​​Looking for revenge against your gas supplier after years of eye gouging price increases? Pipe insulation could cut your energy use dramatically and repay your initial investment in just weeks – making Kaiflex your weapon of choice when it comes to payback time.

There are bigger energy saving measures but pipe insulation saves you money every time you turn on your heating system and at a fraction of the cost of double glazing or a new boiler. When it costs so little and saves so much it’s hard to make an economic argument for not insulating your pipes.​

Initial cost vs long term savings

​​The ‘payback period’ of any energy saving measure is the time it takes before the value of the energy saved fully offsets the cost of implementing the measure in the first place. Different methodologies calculate the payback period slightly differently but, whichever you favour, pipe insulation for heating pipes is likely to provide a much shorter payback period than any other energy saving technology.

​​To understand why let’s look at the most popular type of payback calculation.

In this case we take the value of the insulation and the cost of the labour to install the insulation. We then divide this figure by the value of the energy saved and this gives us the standard ‘payback period’.​

Going Beyond Payback

​​Once an energy saving measure has been in place for longer than the ‘payback period’ every Watt of energy saved represents a net saving. Every day thereafter it’s making you money!

​​Many manufacturers and schemes recommend that you install a thickness of insulation with a very long payback period. The logic of this approach is that a longer payback period ultimately equates to a higher rate of energy saving. Unfortunately, higher initial costs mean that energy saving measures with a long payback period are rarely implemented.

A long payback period can also prove counter-intuitive – with a measure like pipe insulation the system may be removed and replaced before the material even repays the initial investment if the payback period is in the region of 5 or more years. By prioritising measures with a short payback period you realise energy savings quickly and the savings will continue throughout the life of the installation.

Faster Payback

​​Kaiflex has a very short payback period – usually measured in weeks not years – and what this means is that the material is incredibly good value.

​​The way that insulation saves energy means that the first few mm of insulation is the most effective and this means that in general thinner insulation will have a much shorter payback period whilst still saving 70%+ of the energy that it’s possible to save.

Kaimann has produced a simple payback period calculation tool that’s available now online. With just a few clicks you can see just how quickly a small investment in Kaiflex will be repaid in lower heating bills.​

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Looking for revenge against your gas supplier after years of eye gouging price increases? Pipe insulation could cut your energy use dramatically and repay your initial investment in just weeks ...

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Article Date
2/18/2016
Target
blog-technical-insulation