ROI calculation for the Inverter implementation for IMD Machine 02

No. of machine working hours per day = 22 hrs

Power rating of the hydraulic motor = 15kW

Total energy consumed in a day = 330kWh

Total energy consumed in a month (28 days) = 330 x 28

= 9240kWh

Cost per energy unit 1 kWh (avg) = 11.38 lkr

Total energy charges per month = 105151.2 lkr

Assuming 30% energy savings *, Saving per month = 31545.36 lkr

Assumed saving per month = 30000 lkr.

Then annual saving = 360000 lkr.

Assumed interest rate = 12%

Price of the inverter = $4050

Value of $1 in lkr = 160

ROI is given by n where it is in years

(1 + 0.12)𝑛 − 1
(4050 × 160) = 360000 [ ]
0.12 × (1 + 0.12)𝑛

(1 + 0.12)𝑛 − 1
648000 = 360000 [ ]
0.12 × (1 + 0.12)𝑛

𝒏 = 𝟐. 𝟏𝟒𝟕 𝒚𝒆𝒂𝒓𝒔