Indirect Costs or Savings

Indirect costs and savings are those that are not immediately attributed to the actual technology but are, in fact, related in some manner. One example of indirect savings may be reduced fire hazard insurance rates when monitored security systems are added. An example of an indirect cost might be the need to install carbon monoxide alarms when switching from an electric to a gas heating system. Another example of indirect savings might be made in reduced tenant turnover because of tenants’ higher levels of satisfaction with a dwelling unit, whether because of better comfort, a more secure facility, more durable fixtures, or any other benefit resulting from an innovation.