UTILIGUARD® FINANCIAL SAVINGS
RETURN ON INVESTMENT (ROI)
The UtiliGuard® Power Quality System generally provides a return on investment (ROI) between 30 – 50%. ROI is the earning power of assets (investment) measured as the ratio of net income or profit to the total investment of that purchase or project. Usually expressed as a percentage, ROI is the measure of profitability which indicates whether a business (or purchaser) is using its resources in an efficient manner.
ROI = (Net Income or Profit / Total Investment) x 100
Example Investment: The UtiliGuard® Power Quality System
| Type of Business | Average Monthly Electric Expense* | Annual Savings or Net Profit** | Investment | ROI |
|---|---|---|---|---|
| Convenient Store | $1,215 | $2,916 | $8,600 | 34% |
| Restaurant | $3,200 | $7,670 | $15,050 | 51% |
| Auto Dealership | $6,265 | $15,036 | $32,250 | 46% |
| Manufacturing Plant | $18,030 | $43,272 | $97,500 | 44% |
* Based on Kilowatt-Hour Consumption
** Manufacturer's 20% Savings Guarantee x 12 Months
Maintenance, repair and extended equipment life savings have not been factored into these calculations. These line items would increase net profit amounts as well as have positive effect on ROI.
TAX DEDUCTIONS
The UtiliGuard® Power Quality System is depreciable under IRS codes, and when using the accelerated deductibility method, greater tax deductions for this qualifying property may be taken in the year of installation, rather than spreading out depreciation in a standard, straight line method.
Example: A company makes a qualifying purchase of equipment or property. The first year, the company has the option of declaring standard depreciation on the equipment or declaring an accelerated deduction. If accelerated deduction is used, the size of the deduction the first year may be enough to offset much of the purchase cost. It does, however, mean that the equipment or property will not generate tax deduction in later years, but the company gets a nice tax break in year one, the year of the purchase. Coupled with a financing plan, the deduction for the equipment plus the interest from the lease payments could result in complete deductibility in year one and immediate positive cash flow to the business.
This example is for illustration purposes only and not intended to reflect accounting advice.
FINANCE OPTIONS
The UtiliGuard® Power Quality System may be financed in three ways.
Cash – 20% down payment due with order. Balance due at installation.
Credit Card – Visa, MasterCard and Discover are accepted. 20% down payment due with order. Balance due at installation.
Payment Plans – Monthly payments are available through financing. We partner with reputable equipment leasing and finance companies as a service to our customers, and in most cases, this type of financing has shown to improve cash flow and offset upfront costs.
CONTACT US
- Contact us to schedule an appointment with a Power Efficiency Systems representative.
- A PES consultant will conduct a FREE on site facility survey and customized proposal for your review.
- ROI and financing calculations are included in proposals as an additional service, at no charge.
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