All industries or businesses mainly run on two crucial elements: one is proper budgeting, and the other is a high level of productivity. So, before making any financial decision, it remains an important part to evaluate whether that particular investment stays fruitful or not.
If we talk about one such facility to improve airflow in a large space by installing an HVLS fan, then it proves beneficial to first calculate its ROI. By doing this, businesses can make informed decisions about their HVLS installation and make sure that it also aligns with their financial goals.
Method to Calculate ROI on HVLS Fan Installation
The ROI (Return on Investment) is one measuring factor that is used to evaluate the efficiency of your investment. The simple equation that is used to totalize ROI is:
ROI = (Net Profit / Cost of the investment) * 100
Let us understand this calculation by taking simple example:
Determine your installation cost
Calculate the total cost which is used in HVLS fans installation. In which you can consider factors such as its purchase cost, installation charges, and cost of any other wiring or electrical modification.
For example, this cost is ₹2,00,000.
Estimate energy savings
By installing these HVLS fans you may see noticeable reduction in your HVAC costs. Because by improving air circulations, this allows your heating/cooling systems to work more efficiently. For this estimation, you can compare your electricity bills before and after installing HVLS fans.
For example, you have noticed that your monthly electricity bill drops ₹5,000.
Then your annual saving = ₹5,000 * 12 = ₹60,000
Consider maintenance saving:
There is a high chance that to keep your traditional fan high performed you require maintenance and replace some parts frequently. But in HVLS fans this upkeep becomes minimal that saves your maintenance cost.
For example, by using traditional fans, you were spending ₹13,000 annually in maintenance, but after HVLS fan installation you only have to spend ₹3,000, so here you make a profit of ₹10,000 per year.
Calculate the net annual savings
Add the all savings that you are making after installing HVLS fans.
For example, total savings = annual energy savings (₹60,000) + maintenance savings (₹10,000) = ₹70,000
Apply the ROI equation
As you are ready with all these figures, now it is time to apply the ROI formula:
ROI= (₹70,000 / ₹2,00,000) × 100
=35%
This ROI figure indicates that you will recover your 35% investment in the first year after installation and within around 3 years you will recover all your investment back.
Conclusion
Installing HVLS fans is not only linked with getting better airflow but it also proves one strategic decision that helps you in reducing costs, improving energy efficiency, and enhancing comfort. By doing proper ROI calculations for HVLS fan installation, you can find out how this facility gives you long-term savings. At Wind Fan, we provide exceptional quality HVLS fans and also help industries choose the right fan that maximizes ROI.
