Energy Audit involves measuring the energy consumption of any enterprise and suggesting ways of reducing some energy consumption.Reduction of energy consumption often requires investment and such investment decisions are often made on financial basis.For example reducing electricity consumption in lighting requires investment in energy efficient illumination options like LEDs and the corresponding savings of electricity.Replacement of inefficient air conditioning system with an efficient one might save lot of electrical energy and if tariffs are higher lot of money .But that return on investment needs to be attractive especially if the investment is to be justified. Just as energy audit saves energy and cuts down energy costs ,solar projects like solar photovoltaic systems and solar water heating projects have potential to reduce electricity bills .Solar photovoltaic systems installation requires significant capital investments and again those needs to the justified Solar water heating systems require relatively less investment but doing a financial analysis is still a good idea before actually investing hard earned money .

In this Financial analysis course designed by me , students get to learn how to analyze the energy audit and solar projects and estimate their economic viability.Simple pay back period calculations is a simple and powerful tool used by energy auditors but has certain disadvantages which this course discusses.Another interesting concept called time value of money is taken for discussion and the terms like Present value of investment and present value of returns is explained in a bit detail using practical examples.How to choose a project when a particular Net present value is estimated is simplified . Another interesting concept called as internal rate of return is explained with few practical examples.

Outcome of this course is capacity building of consumers and entrepreneurs in financial analysis of energy audit and solar projects.This course is a fun .