Cost avoidance vs. cost savings explained.

Avoided cost refers to a cost that is not present now, but which is certainly coming in the future. So for example if I maintain my homes heating and cooling systems with regular maintenance it will last longer and I will avoid the cost of replacing the system early but not entirely.

Cost savings like the work Vermont Efficiency does means the home that uses 1000kwh to heat it every month now only uses 750kwh to create the same amount of heat. This equates to real dollars saved that can be spent elsewhere or put in the bank.