Heat Recovery Payback Calculation

Before buying a recovery unit, a quick payback calculation shows whether it makes sense. You only need a few field numbers and the local energy price.

The Core Formula

Annual energy saved (kWh) = 1.2 x airflow (m3/h) x eta x dT (C) x hours/year / 1000

Where 1.2 is the approximate volumetric heat capacity of air (Wh/m3.K), eta is effectiveness, and dT is the temperature difference between exhaust and supply.

Worked Example

  • Airflow: 10,000 m3/h
  • Effectiveness: 75 % (0.75)
  • dT (winter average): 20 C
  • Operating hours: 6,000 / year
  • Energy price: $0.12 / kWh

Saved = 1.2 x 10,000 x 0.75 x 20 x 6,000 / 1000 = 1,080,000 Wh = 1,080 kWh/year.
Value = 1,080 x $0.12 = $129.6 / year.
If the unit (installed) costs $1,500, payback is about 11.6 years – but add fan-energy savings and incentives, and real projects in cold climates often land at 2-4 years.

Factors That Shorten Payback

  • Higher dT (colder climate, hotter exhaust)
  • More operating hours (continuous processes)
  • Higher energy price
  • Rebates or carbon credits
  • Combined heating + cooling savings (enthalpy)

Turn the estimate into a decision with a short sensitivity check. Vary the two strongest drivers, the temperature difference and the operating hours, to see how fragile the payback is; a project that only works at the best guess is risky. Add the fan-energy penalty and any cooling saving from enthalpy recovery, since ignoring either skews the result. Then layer in incentives, carbon pricing, or an energy-service contract, which can move a marginal case to clearly worthwhile. Treat the formula as a screening tool and confirm with the manufacturer curve and, for larger spends, a detailed model. Our heat recovery solutions include performance data to support that check.

Frequently Asked Questions

Should I include fan energy?
Yes – subtract the extra fan electricity from the saved heating value for a true net payback.

Is this accurate enough to buy on?
It is a good screening estimate; confirm with the manufacturer’s performance curve and a detailed energy model before purchase.

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