Determining Cost-Effectiveness

This excerpt from the National Action Plan for Energy Efficiency's Guide to Resource Planning with Energy Efficiency provides a high level overview of the various tests used to determine the cost-effectiveness of energy efficiency programs and portfolios. It also offers a discussion of the use of discount rates. At-a-glance reference tables illustrate: 1) the questions addressed by various tests and 2) the benefits and costs measured from each test perspective. The entire document is just 5 pages, and is a great primer for those who are new to program planning or just interested in the basics.