Quick Answer
To calculate the return on investment (ROI) for an atmospheric water generator, determine the initial cost of the equipment, the total amount of water it can produce annually, and the cost savings from not having to purchase bottled or filtered water. Calculate the total annual savings and compare it to the initial cost to determine the ROI. This can be expressed as a percentage.
Determining Annual Water Production
To calculate the ROI, start by determining the annual water production of the atmospheric water generator. This can be calculated by multiplying the daily water production rate by 365 (days in a year). For example, if the generator produces 25 gallons of water per day, the annual water production would be 25 x 365 = 9,125 gallons. This amount of water can be used to determine the cost savings.
Calculating Cost Savings
Next, calculate the cost savings from not having to purchase bottled or filtered water. If the cost of bottled water is $5 per gallon, the cost savings from producing 9,125 gallons of water per year would be 9,125 x $5 = $45,625 per year. However, this calculation may not take into account the cost of electricity to operate the generator, which can range from $0.10 to $0.50 per kilowatt-hour (kWh), depending on the location and energy source.
Calculating ROI
To calculate the ROI, divide the total annual savings by the initial cost of the equipment and multiply by 100. For example, if the initial cost of the equipment is $50,000 and the annual savings is $45,625, the ROI would be ($45,625 / $50,000) x 100 = 91.25%. This means that the investment in the atmospheric water generator would pay for itself in approximately 1.1 years, resulting in a significant return on investment.
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