Economic and Financial simulation tool Advanced simulator
of return (IRR)
This value is used in the estimation of the convenience of potential investments. Generally speaking, the higher the IRR, the more desirable the investment. A higher IRR will be associated with a financial feasibility of heat pump plant.
payback period (DPP)
Number of years taken to break even from undertaking the initial expenditure, by discounting future cash flows and recognizing the time value of money. DPP is an indicator of the time needed to recover the initial investment considering our hypothesis (the only saving considered to recover the investment will be the difference between the annual costs of traditional plants and heat pump plants).
Amount of money to spend to recoup the lifetime cost of the system (per kWh). The lower the LCOE, the lower the cost that should be undertaken.