An assessment of the financial efficiency of a heat recovery system from graywater in a hotel

Abstract

The purpose of the article is to determine the profitability of investing in a graywater heat recovery system in a hotel facility located in south-eastern Poland whichis dependent on three heat sources for the domestic hot water preparation system, i.e. gas boiler, biomass boiler and electric heater. There were also various options for accommodation use: 25%, 50%, 75% and 100% occupancy of the hotel. The research was focused on the most frequently used methods for the absolute assessment of the effectiveness of investment projects enabling the creation of an objective criterion. Thus, both the simple method - Simple Pay Back Period SPBP and dynamic methods based on the discount account were used in calculations: Net Present Value NPV, Internal Rate of Return IRR, Profitability Index PI, Discounted Pay Back Period DPBP. The analysis also includes the annual increase in the purchase price of energy carriers. The conducted research has shown that in most cases the installation of the DWHR (Drain Water Heat Recovery) system is beneficial and profitable to the investor.