Cost effectiveness means getting the best value for money.
To compare the cost effectiveness of different appliances, we need to take account of a number of different costs. These may include the maintanance, environmental and running costs.
To reduce energy bills, you may buy newer, more effecient appliances (like a new fridge) and install materials designed to reduce energy wastage (such as loft insulation).
The payback time is the time it takes for an appliance or installation to pay for itself in terms of energy savings.
payback time (years) = cost of installation (£) ÷ savings per year in fuel costs (£)
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