One of the most important considerations of investors of energy-saving or green building project is knowing if and when the investment will pay off. In order to attract investors there must be assurances that their investment is profitable. Investors, owners and project managers employ various tools to evaluate fiscal feasibility and one of the most effective means for assessing total cost is the Life Cycle Cost Analysis (LCCA).
LCCA is an assessment method that takes into account the fiscal aspects in the acquisition, ownership and disposition of building projects. It can also be brought to bear by project managers to weed out alternative possibilities and focus in on achieving project performance goals. When comparing two or more design alternatives, the Energy Life Cycle Cost Analysis (ELCCA) method can be used. ELCCA is a computer model that accurately quantifies different design alternatives.