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

Typical payback period for cogeneration

Cogeneration (combined production of electricity and heat) and trigeneration (production of electricity, heat, and cooling) maximize the energy contained in fuel. In traditional electricity production, some energy is lost as waste heat. Cogeneration systems, however, utilize this heat, significantly increasing overall efficiency and enabling savings.

According to DB Energy, the payback period for cogeneration investments is typically 2–4 years, making it very attractive for industrial companies requiring simultaneous heat and electricity supply. Financial support options, such as a cogeneration premium or ESCO financing, enhance its appeal.

For instance, we recently completed an investment stage at Schumacher Packaging, a company in the packaging and paper processing industry. The 4.5 MW cogeneration installation we implemented pays for itself in 3 years. As of its completion in September 2024, it is the largest operating LNG-powered cogeneration unit in southern Poland, with a total cost of PLN 21.8 million.

Compressed air

Compressed air is vital to many industrial processes but often operates inefficiently, generating losses and unnecessary costs. Compressed air production management systems can yield significant savings, with a typical payback period of under 2 years. Projects often involve identifying and repairing leaks or improving compressor efficiency.

Our analyses show substantial potential in repairing air leaks. Statistically, 80% of European plants experience leaks at levels of 25–30%, with our measurements confirming an average of 30%.

Sealing compressed air systems brings notable savings with minimal financial outlay. The average payback period is less than six months. For example, one audited plant saved 2.21 GWh of energy, avoided PLN 574.6 thousand in costs, and required an investment of only PLN 170 thousand.

Photovoltaic payback period

While photovoltaics may not offer as short a payback period as other energy-saving technologies, they provide long-term benefits.

According to DB Energy, photovoltaic investments typically have a 5–7 year payback period. This is acceptable considering the advantages of independence from fluctuating energy prices and the ability to produce green energy.

For micro-installations up to 50 kW, simplified formalities further shorten implementation time.

Heat pumps

Heat pumps are gaining traction in the industrial sector, especially for processes requiring heating. They utilize waste heat or environmental energy (e.g., air, water, or ground) to generate useful heat, reducing demand for electricity or fossil fuels. Typical payback periods range from 3–5 years, depending on investment scale and available financial support.

At Słodownia Soufflet, we proposed a heat pump system combined with two cogeneration units. The investment, totaling PLN 29 million, included heating and cooling system modernization. Financed under the ESCO model, this project enables annual savings of approximately 30 GWh of heat energy and 12 GWh of electricity.

Lighting modernization

Lighting often remains overlooked but offers substantial savings. Upgrading outdated systems to LED lighting can reduce energy consumption by 60–80%. 
For example, at Simoldes Plasticos Polska, modern LED fixtures and a DALI control system achieved annual energy savings of approximately 60%. This modernization was conducted without disrupting production. The system adjusts lighting intensity based on natural daylight levels, ensuring optimal energy use.

Technological advances now even justify replacing older LED luminaires with the latest models.

Electric drives

Electric drives consume over 70% of industrial electricity. Enhancing their efficiency significantly impacts operating costs. Many installations lack proper control systems, resulting in inefficiency. Simple regulation methods can yield 30–60% savings.

At DB Energy, the average payback period for electric drive modernization is 2.5 years. For example, modernizing a 1,000 kW pump drive reduced annual energy consumption by 1,300 MWh, saving PLN 160,000 annually with a 2-year payback period.

“Cogeneration, compressed air system modernization, and increased electric drive efficiency often have relatively short payback periods, enabling quick realization of savings. For manufacturing companies, maximizing available resources at minimal operating costs is key. Technologies with SPBTs of 2–4 years are a step toward lower energy consumption and financial stability.” says Przemysław Kurylas, COO of DB Energy.

Each of these technologies offers measurable financial and energy savings. Many can be implemented simultaneously, improving energy efficiency on multiple fronts. Such investments support sustainable company development, climate goals, and a responsible business reputation. A thorough analysis of plant needs ensures optimal technology selection, delivering both short-term benefits and a long-term energy strategy.