Portfolio-Level Investment Planning

Roovie includes a portfolio-level investment planning engine that translates building performance data into financial decision-making.

This is not a simple payback calculator. The system scores and prioritizes buildings across a portfolio, generates multi-year capital plans within budget constraints, calculates industry-standard financial metrics, values carbon credits, and runs sensitivity analysis to quantify risk.

It speaks the language of the CFO: NPV, IRR, payback, ROI, profitability index, and lifecycle cost. It also speaks the language of sustainability: carbon reduction, emissions intensity, and ESG-aligned credit valuation.

In One Line

Score buildings. Prioritize investments. Generate capital plans. Quantify returns. Value carbon.

How It Works

Portfolio of buildings with simulation results
  → Extract performance metrics (EUI, cost, emissions, efficiency)
  → Score and prioritize buildings using weighted multi-factor scoring
  → Match buildings to retrofit templates
  → Calculate financial metrics per building
  → Generate multi-year capital plan within budget constraints
  → Run sensitivity analysis across budget scenarios
  → Value carbon credits and deferred costs
  → Produce portfolio-wide investment summary

Priority Scoring

Every building in the portfolio receives a priority score from 0 to 100 based on four factors:

Financial Score

Driven by Energy Use Intensity. Buildings with higher EUI have more savings potential, so they score higher. Normalized across the portfolio using min-max scaling.

Carbon Score

Driven by emissions intensity (kgCO2e per unit area). Buildings with higher emissions represent greater carbon reduction opportunity. Same normalization approach.

Condition Score

Driven by efficiency score, inverted. Buildings with lower efficiency are in worse condition and score higher for retrofit priority.

Cost Score

Driven by operating cost per unit area. Buildings that cost more to operate have more room for savings.

Weighted Composite

The four scores are combined using configurable weights that sum to 1.0:

Priority Score = (Financial × W1) + (Carbon × W2) + (Condition × W3) + (Cost × W4)

Default weights give equal emphasis to all four factors, but organizations can adjust the balance to emphasize financial return, carbon impact, building condition, or operating cost reduction based on their strategic priorities.

Priority Classification

Score Range	Priority	Meaning
75 and above	Critical	Immediate retrofit needed
50 to 74	High	Strong retrofit candidate
25 to 49	Medium	Consider in planning cycle
Below 25	Low	Low near-term priority

Financial Metrics

For each building investment, the system calculates a complete set of financial metrics:

Simple Payback

Time in years to recover the capital investment from annual savings. The most intuitive metric for quick assessment.

Return on Investment

Total savings over the analysis period minus capital cost, divided by capital cost. Expressed as a percentage.

Net Present Value

The present value of all future cash flows minus the initial investment, using a configurable discount rate. The primary metric for investment decisions because it accounts for the time value of money.

Internal Rate of Return

The discount rate at which NPV equals zero. Calculated using the Newton-Raphson method with bisection fallback for robustness. Bounded to reasonable values and tolerant of edge cases.

Profitability Index

NPV divided by the initial investment, plus one. A PI above 1.0 indicates a worthwhile investment. Useful for ranking investments by efficiency when capital is limited.

Break-Even Year

The year when cumulative cash flow turns positive, interpolated to fractional years. Returns null if the investment never breaks even within the analysis period.

Lifecycle Analysis

Total lifecycle savings, total maintenance costs, and net lifecycle benefit over the full analysis period.

Cash Flow Generation

The system generates year-by-year cash flows with:

• Energy price escalation — savings grow over time as energy prices increase (default 3 percent per year)
• Carbon credit escalation — carbon value grows as carbon pricing increases (default 5 percent per year)
• Maintenance costs — annual maintenance deducted from net cash flow
• Discounted cash flows — present value of each year's net cash flow for NPV calculation
• Cumulative cash flow — running total showing the path to break-even

Year zero captures the capital expenditure. Subsequent years capture escalating savings minus ongoing costs.

Carbon Credit Valuation

The system monetizes emissions reductions:

1. Convert annual emissions savings from kgCO2e to metric tons
2. Multiply by the carbon price per ton (configurable, default 50 dollars per ton)
3. Escalate the carbon value annually (default 5 percent per year)
4. Calculate lifetime carbon value and its NPV
5. Report carbon's contribution as a percentage of total financial value

Carbon credits can be included in cash flow analysis, improving payback periods and NPV by treating avoided emissions as a revenue stream.

The system includes four carbon price presets:

Level	Price Per Ton	Context
Low	30 dollars	Current voluntary market rates
Medium	50 dollars	EU ETS average
High	85 dollars	Social cost of carbon
Premium	150 dollars	Future compliance market rate

Deferred Cost Analysis

Some investments make sense not because of energy savings alone, but because they avoid a more expensive alternative.

Example: A roof coating that costs 50,000 dollars and extends the roof life by 15 years avoids a 200,000 dollar full roof replacement. The deferred cost savings of 150,000 dollars fundamentally changes the investment picture.

The system calculates:

• Deferred cost savings (alternative cost minus actual cost)
• Net effective capital expenditure (can be negative when avoided cost exceeds investment)
• Adjusted payback, ROI, and NPV including the deferred benefit
• Deferred cost contribution as a percentage of total value proposition

Capital Plan Generation

Given a portfolio of prioritized investments and a total budget, the system generates a multi-year capital plan.

How Allocation Works

1. Investments are sorted by priority level (critical first, then high, medium, low)
2. Within each priority level, smaller investments are placed first for optimal budget packing
3. Each year receives an equal share of the total budget (with 10 percent overshoot tolerance)
4. Investments are placed in the earliest year with available budget
5. If a building specifies a preferred implementation year, the system respects it when budget allows

What The Plan Shows

For each year:

• Calendar year
• Planned capital expenditure
• Which buildings are retrofitted
• Cumulative capital spent to date
• Cumulative annual savings from all prior investments (with escalation)
• Cumulative net cash flow showing the portfolio's path to payback

This gives portfolio managers a year-by-year view of when money goes out, when savings accumulate, and when the portfolio investment turns net positive.

Portfolio Health Assessment

The system evaluates overall portfolio condition:

Status	Trigger
Healthy	Average efficiency above 70 percent and less than 20 percent poor buildings
Needs Attention	Average efficiency above 50 percent or less than 40 percent poor buildings
Critical	Average efficiency below 50 percent or 40 percent or more poor buildings

The assessment includes:

• Average portfolio efficiency score
• Percentage of poor and average buildings
• Total annual operating cost
• Estimated total savings potential
• Total carbon footprint
• Quick wins: the top 5 investments with payback of 5 years or less

Sensitivity Analysis

The system models how portfolio NPV and savings change across a range of budget scenarios:

• Define a budget range (minimum to maximum)
• The system calculates portfolio outcomes at multiple points across that range
• Results show NPV and annual savings at each budget level
• This reveals diminishing returns, breakeven thresholds, and optimal investment levels

The output supports board-level discussions about how much to invest and what returns to expect at different commitment levels.

Budget Optimization

When capital is limited, the system selects the optimal subset of investment opportunities.

The optimization can target:

• NPV: maximize total value per dollar invested
• ROI: maximize percentage return
• Savings: maximize annual cost reduction per dollar invested
• Carbon: maximize emissions reduction per dollar invested

The algorithm uses greedy efficiency ranking — selecting the highest-efficiency investments first until the budget is exhausted — and reports the resulting portfolio metrics including total capex, annual savings, NPV, average payback, and remaining budget.

Retrofit Templates

The system includes pre-configured retrofit templates with typical costs and savings:

• LED Retrofit — 2.50 dollars per sqft, 30-50 percent savings, 2-4 year payback
• HVAC System Upgrade — 15.00 dollars per sqft, 15-35 percent savings, 5-10 year payback
• Building Envelope — 8.00 dollars per sqft, 10-25 percent savings, 8-15 year payback
• Building Management System — 3.00 dollars per sqft, 10-20 percent savings, 2-5 year payback
• Rooftop Solar PV — 12.00 dollars per sqft, 20-40 percent savings, 6-10 year payback

Template selection is automatic based on building characteristics: high-EUI buildings get HVAC upgrades, moderate buildings get envelope improvements, and lower-priority buildings get LED retrofits or BMS upgrades.

What Makes This Different

Most portfolio planning tools operate on spreadsheet-style inputs. The user provides cost and savings estimates, and the tool runs the math.

Roovie's system is different because the inputs come from the building models themselves:

• EUI, cost, and emissions are calculated by the physics engine, not estimated
• Priority scoring uses actual simulation results, not assumptions
• Financial metrics are grounded in real building performance data
• Capital plans are constrained by the same budget logic that CFOs apply
• Carbon valuation uses the same emissions data that the simulation produced

The planning engine does not exist in isolation. It sits on top of the simulation layer, which means investment decisions are backed by physics, not projections.

Bottom Line

Roovie's portfolio investment planning engine turns building simulation results into financial decision-making tools. It scores buildings, prioritizes investments, generates capital plans, calculates NPV and IRR, values carbon credits, and runs sensitivity analysis — all at portfolio scale.

The result is a bridge between the engineering team that understands building performance and the finance team that allocates capital. Both sides get what they need: the engineers get validated performance data, and the executives get investment metrics they can act on.