However, companies such as Baltimore Electric, insurance carriers and risk management companies have noted the huge savings received from infrared CM programs. Table 1 itemizes equipment inspected, and in some cases, indicating potential impact and possible savings as reported by various power distribution organizations, industrial plants and insurance companies. The cost of implementing an infrared condition monitoring program and the return on investment, will vary with the size of facility, complexity of the program, and whether infrared equipment will be purchased or a service hired. Most utilities and industries recognize that infrared electrical inspections are a key element to providing electrical system reliability. For a large organization, purchasing equipment and setting up an in-house infrared condition monitoring program is economically justifiable.
Many companies report a complete payback the first time the instrument is used.
For example, during the initial inspection at a BC metal smelter, a hot contactor was found in their main substation which, if not found, would have brought much of the process to a halt costing hundreds of thousands of dollars. On the average, the return on investment is approximately 3 months. Smaller industrial facilities and commercial building owners can set up an infrared inspection program by using an infrared service company. The return on investment in this situation is also excellent. Another example at a plastics manufacturing plant where an infrared inspection revealed numerous loose, dirty and corroded connections throughout the plant's main electrical distribution system.