Developing Generalised Equation for the Calculation of PayBack Period for Rainwater Harvesting Systems

Monzur A. Imteaz, Maryam Bayatvarkeshi and Md. Rezaul Karim
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Monzur A. Imteaz: Department of Civil and Construction Engineering, Swinburne University of Technology, Melbourne, VIC 3122, Australia
Maryam Bayatvarkeshi: Department of Soil Science, Malayer University, Malayer 65719-95863, Iran
Md. Rezaul Karim: Department of Civil and Environmental Engineering, Islamic University of Technology (IUT), Board Bazar, Gazipur 1700, Bangladesh

Sustainability, 2021, vol. 13, issue 8, 1-11

Abstract: Many end-users for the stormwater harvesting systems are reluctant in implementing the system due to uncertainties of the potential returns for their investment for such system. A common practice of presenting potential benefit of a certain investment is through calculation of payback period using net annual benefit from the system. Traditional practice of doing such payback period analysis for rainwater tanks was considering individual building/roof, system volume, and specific investment cost. It is not feasible to conduct such analysis for each and every rainwater harvesting system installed in different buildings. To overcome this tedious practice, this study presents development of a generalised equation for the estimation of payback period for rainwater tanks based on roof area, initial cost, and rate of return. Based on an earlier study, several payback periods were calculated for different roof sizes, initial costs, and rate of return. It was found that all these variables can be correlated and embedded into a base equation of power function. Final developed equation results were compared with the payback periods calculated through traditional practice considering net annual savings and net present value of cumulative savings. It is found that the developed equation can estimate payback periods with very good accuracies; for all the selected internal rates of return correlation values ranging from 0.99 to 1.0 were achieved. Corresponding coefficient of determinations varied from 0.988 to 0.993. Furthermore, it is found that for a fixed roof area and rate of return, the payback period is having a power relationship (having an exponent less than 1.0) with the initial cost.

Keywords: rainwater tank; payback period; stormwater harvesting; initial cost (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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