Typical payback periods of energy-saving technologies - an overview of solutions for industry

Cogeneration (combined production of electricity and heat) and trigeneration (production of electricity, heat, and cooling) are technologies that enable maximum use of the energy contained in fuel. In traditional electricity generation processes, part of the energy is lost in the form of waste heat, while in cogeneration systems this heat is utilized. As a result, the efficiency of the entire process increases significantly, generating savings.

According to DB Energy data, the payback period for investments in cogeneration is typically 2–4 years, which makes it very attractive for industrial companies requiring simultaneous heat and electricity supply. Thanks to numerous financial support opportunities, such as the cogeneration bonus or ESCO financing, cogeneration is a highly interesting and efficient solution both from an energy and financial perspective.

For example, we recently completed another stage of investment at Schumacher Packaging, a company in the packaging and paper processing industry. The 4.5 MW cogeneration unit we installed there has a payback period of 3 years. At the time of completion in September 2024, it was the largest operating LNG-powered cogeneration unit in the southern part of Poland. The total cost of the unit and accompanying installations amounted to PLN 21.8 million.

Compressed air is a key element in many industrial processes; however, compressed air installations often operate inefficiently, generating losses and unnecessary costs. The use of systems for managing compressed air production delivers significant savings, and the typical payback period for such investments does not exceed 2 years. These projects usually involve identifying and eliminating leaks in the installation or preventing inefficient compressor operation.

In our analyses, we highlight the huge potential associated with repairing air leaks. Statistically, in 80% of plants in Europe, leaks occur at a level of 25–30% (our experience and measurement data indicate an average of 30% in industrial plants).

Leaks are common and difficult to completely eliminate, but sealing compressed air systems brings noticeable savings with relatively low financial outlays – the average payback period is under 6 months. As a result of eliminating leaks in a plant we audited, 2.21 GWh of energy was saved, with avoided costs amounting to PLN 574,600, for an investment of about PLN 170,000.

Although photovoltaics do not offer as short payback periods as other energy-saving technologies, they are worth considering in the context of long-term benefits.

According to DB Energy, investments in photovoltaic installations have a payback period of around 5–7 years. This is an acceptable timeframe in the context of the benefits of independence from volatile energy prices and the possibility of producing one’s own green energy.

It is also worth noting that for micro-installations up to 50 kW, formalities are simplified, which further shortens the investment implementation time.

Heat pumps are gaining increasing recognition in the industrial sector, especially in processes requiring heating. Their efficiency lies in using waste heat or environmental energy (e.g., air, water, or ground) to produce usable heat, significantly reducing the demand for electricity or fossil fuels. The typical payback period for heat pumps in industrial companies is 3–5 years, depending on the scale of the investment and available sources of financial support.

For example, we proposed a 2.3 MW heat pump using waste heat from a dryer, supported by two cogeneration units, at Soufflet Malting House. The investment, which included modernization of the heating and cooling systems as well as two cogeneration units with a capacity of 0.99 kWe, reached a total cost of PLN 29 million. We financed the entire investment under the ESCO model – this project allows Soufflet Malting to save about 30 GWh of thermal energy and about 12 GWh of electricity annually.

Lighting is an area that is often overlooked, yet it can deliver significant savings. In industry, modernizing outdated lighting systems to modern LED lighting can reduce energy consumption by 60–80%.

For example, at our client Simoldes Plasticos Polska, the use of LED luminaires and a Dali control system resulted in annual energy savings of about 60%. The entire modernization was carried out without stopping the production process. Thanks to special sensors, artificial lighting levels can be adjusted – when natural daylight is strong enough, the LED luminaires are dimmed to the appropriate level and vice versa.

Currently, technological progress in this area is so significant that it is also cost-effective to replace older LED luminaires with the latest models.

Electric drives consume over 70% of the electricity used in industry, which means that improving their efficiency has a major impact on operating costs. Many drive installations operate inefficiently due to a lack of proper control systems. Introducing simple methods to regulate drive system operation can deliver savings of 30–60%.

The average payback period for electric drive modernizations carried out by DB Energy is 2.5 years. For example, we completed an EPC-model investment involving modernization of a 1,000 kW pump drive. It reduced energy consumption by 1,300 MWh per year, generating annual savings of PLN 160,000, with a payback period of 2 years.

Each of the above technologies can deliver measurable savings, both financially and in terms of energy efficiency. Many of these solutions can also be used simultaneously, improving a company’s energy efficiency on multiple levels. Such investments contribute to the sustainable development of the enterprise, supporting the achievement of climate goals and strengthening the company’s reputation as a responsible business partner. Thanks to a detailed analysis of the plant’s needs and capabilities, the right choice of technology brings benefits both in the short term and in the long-term energy strategy.