If a project is rated less than 1 SIR, what should be the homeowner's decision regarding the project?

Prepare for the Building Performance Institute (BPI) Certification Exam. Utilize study materials like flashcards and multiple choice questions with explanations. Excel in your exam!

When a project has a Savings to Investment Ratio (SIR) of less than 1, it indicates that the expected savings from the improvements will not cover the costs of the project. This suggests that the financial return on the investment is likely to be negative. In such cases, the homeowner should reconsider the investment based on the projected return. A ratio below 1 signals that, financially, it may not be wise to proceed with the project since it would lead to a loss rather than a gain.

This analysis helps homeowners understand the importance of evaluating the economic feasibility of energy efficiency projects. By re-evaluating their financial commitment based on the SIR, they can make an informed decision that aligns with their budget and investment goals. The focus is on ensuring that funds are allocated to projects that will provide positive returns in terms of energy savings and associated benefits.

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