Engineering23 min read

FREE CEM Exam Guide 2026: AEE Certified Energy Manager, 700/1040, 4 Hrs Open-Book

FREE 2026 AEE Certified Energy Manager (CEM) study guide: 130 questions, 4 hours, open-book, 14 BoK 2.0 subjects, 700/1040 cut, $500 fee, $250 retest, 6 eligibility paths, EMIT bridge.

Ran Chen, EA, CFP®April 25, 2026

Key Facts

  • The AEE CEM exam contains 130 questions with 120 scored and 10 unscored trial items in a 4-hour open-book format (AEE BoK Study Guide v1.7).
  • The CEM passing score is 700 on a scaled score range of 0 to 1040 per the AEE CEM Body of Knowledge 2.0 (AEE).
  • The AEE CEM application plus first exam attempt fee is 500 USD and is nonrefundable (AEE CEM Candidate Handbook v2.13).
  • AEE charges a 250 USD retest fee for each CEM retake with a 60-day waiting period between attempts (AEE Handbook v2.13).
  • CEM renewal costs 300 USD every three years and requires 10 professional credits, equal to 10 CEUs or 50 PDHs (AEE).
  • The CEM Body of Knowledge 2.0 defines exactly 14 subject areas with HVAC Systems and Building Envelope the largest at 10 to 16 percent (AEE).
  • CEM has six eligibility paths, the fastest being a 4-year engineering degree plus 3 years of related energy experience (AEE).
  • The AEE CEM certification is accredited by the ANSI National Accreditation Board under ISO/IEC 17024 (AEE, ANAB).
  • AEE has issued the CEM credential to more than 16,000 professionals across 40 plus countries since the program began (AEE).
  • The Energy Manager In-Training designation is valid for 6 years while candidates complete the required energy experience (AEE).

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CEM Exam 2026: The Complete AEE Certified Energy Manager Walk-Through

The Certified Energy Manager (CEM) is the flagship credential of the Association of Energy Engineers (AEE) -- the globally recognized professional certification for energy management, auditing, conservation, performance contracting, and measurement and verification. AEE has issued the CEM to more than 16,000 professionals across 40+ countries, and the program is accredited by the ANSI National Accreditation Board (ANAB) under ISO/IEC 17024 -- the highest standard in personnel certification. CEM is the first credential recognized under the U.S. Department of Energy's Better Buildings Workforce Guidelines, and AEE's CEM and CEA meet the energy-auditor criteria of ASHRAE Standard 211-2018 for commercial building energy audits.

This guide is rebuilt from the current AEE primary sources -- the CEM Candidate Handbook v2.13 and the CEM Body of Knowledge & Study Guide v1.7 (effective May 1, 2024), which references Body of Knowledge 2.0 -- to beat every other CEM walk-through online. It carries the verified 14 BoK 2.0 subject areas with their official percentage ranges, the real fee structure ($500 application + first exam, $250 retest, $300 three-year renewal, $350 reinstatement), the exact format (130 questions, 4 hours, open-book, scaled 0-1040, 700 to pass), the six eligibility paths, the 60-day retake waiting period, the EMIT (Energy Manager In-Training) bridge for candidates short on experience, three delivery options including remote proctoring, and the open-book reference strategy that decides who passes.

Who this guide is for. Practicing mechanical, electrical, energy, industrial, and environmental engineers moving into energy management; ESCO project engineers; federal energy managers (FEMP); corporate sustainability staff with engineering or technology degrees; and PE-licensed engineers seeking a vendor-neutral energy-management credential. If you are deciding between CEM and the narrower AEE certs (CEA, CEP, BEP, CMVP, CLEP), the comparison table below maps each to the right role.

CEM At-a-Glance -- 2026

Item2026 Detail
Issuing bodyAssociation of Energy Engineers (AEE), Atlanta GA
AccreditationANAB-accredited under ISO/IEC 17024
Exam nameCertified Energy Manager (CEM)
Questions130 (120 scored + 10 unscored, randomly placed trial items)
Question formatMultiple choice and true/false
Time limit4 hours (240 minutes)
Open-book?Yes -- open book. Printed references and personal notes permitted; no computers, tablets, or phones
CalculatorNon-programmable hand calculator required
Scoring scale0 to 1040 scaled score
Passing score700 of 1040 (AEE CEM Body of Knowledge 2.0)
Application + first exam fee$500 (nonrefundable, per AEE CEM Candidate Handbook v2.13)
Retest fee$250 per retake (60-day waiting period between attempts)
Three-year renewal fee$300
Reinstatement fee$350 (if certification lapses)
Renewal requirement10 professional credits (= 10 CEUs or 50 PDHs) per 3-year cycle
Training requirementAEE-approved training program required before the exam
Delivery optionsLive AEE seminar (proctored on final day), approved testing center, or remote proctoring via ProctorU
ResultsEmailed within 30 days of the exam
Validity3 years
LanguagesEnglish
Recognized byU.S. DOE, ANAB, ASHRAE 211, AF/Army/Navy/Coast Guard COOL, Air National Guard, FEMP

Sources: AEE CEM Candidate Handbook v2.13; AEE CEM Body of Knowledge & Study Guide v1.7; AEE "Becoming a CEM" page (aeecenter.org) -- all current for 2026.


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CEM Eligibility: The Six Official Paths to Sit the Exam

CEM is not open-enrollment. AEE pre-screens every application against six education-and-experience paths. You must qualify under one before you can register for an exam date:

PathEducationRequired Related Experience
14-year engineering or architectural degree, OR Professional Engineer (PE) license, OR Registered Architect (RA) license3+ years
24-year degree in technology, environmental science, physics, or earth science4+ years
34-year degree in business (or related field)5+ years
42-year energy management associate degree6+ years
52-year associate degree (any other field)8+ years
6No degree10+ years

"Related experience" means full-time work in energy engineering or energy management, per AEE. The clock starts when your education level is met; internships count partially and self-employment counts if the work is verifiable.

Source: AEE "Becoming a CEM" eligibility table (aeecenter.org/certified-energy-manager/becoming-a-cem), current 2026.

What Counts as Related Work Experience

AEE defines related experience broadly across energy engineering and energy management:

  • Energy auditing, retro-commissioning, ESCO project development
  • Building automation, controls, HVAC engineering
  • Electrical engineering, motor and drive applications, power factor correction
  • Federal energy management (FEMP)
  • Sustainability program management
  • Energy procurement and deregulated market analysis
  • Combined heat and power (CHP), renewable energy project engineering
  • Measurement and verification (M&V) per IPMVP
  • Lighting design and lighting retrofit project management
  • Industrial energy efficiency, compressed air, steam systems

Pure facilities management without an energy-efficiency mandate generally does not count. When in doubt, document the energy-engineering portion of your role on your application.

EMIT: The Energy Manager In-Training Bridge

If you meet the education requirement but not the experience requirement, AEE issues the Energy Manager In-Training (EMIT) designation when you pass the same CEM exam. EMIT is valid for 6 years, giving you time to accrue the required years of related experience. Once you meet the experience requirement for your education path, EMIT upgrades to full CEM at no additional exam fee. This is the right path for new engineering graduates who want to lock in the exam while the material is fresh.

Documentation Required

  • Resume showing relevant work history
  • Two professional references (one must be your direct supervisor)
  • Copy of your degree or PE/RA license
  • AEE-approved training program completion

CEM vs Other AEE Credentials: Which One Should You Take?

AEE issues a family of credentials. Most candidates do not need more than one or two. Here is the 2026 lineup:

CredentialFull NameBest ForScope
CEMCertified Energy ManagerWorking energy managers, ESCO engineers, federal energy program staffBroadest -- all 14 BoK 2.0 subjects
CEACertified Energy AuditorAuditors specializing in ASHRAE Level 1-3 commercial/industrial auditsNarrow -- audits only
CEPCertified Energy Procurement ProfessionalProcurement, deregulated market traders, contract negotiatorsNarrow -- rates and contracts
BEPBusiness Energy ProfessionalBusiness operators, account managers, customer-facing energy repsBroad but non-technical
CMVPCertified Measurement & Verification ProfessionalM&V engineers, performance-contracting verifiersNarrow -- IPMVP only
CLEPCertified Lighting Efficiency ProfessionalLighting retrofit project engineersNarrow -- lighting only
free CEM study guideFree exam prep with practice questions & AI tutor

The 14 Official CEM Body of Knowledge 2.0 Subjects -- With Verified Weights

The AEE CEM Body of Knowledge 2.0 (referenced by the CEM Body of Knowledge & Study Guide v1.7, effective May 1, 2024) defines exactly 14 subject areas with explicit percentage ranges. These are the only official blueprint weights -- memorize them, because they tell you exactly where to spend your study hours.

#Subject Area (BoK 2.0)Official Weight
1Energy and Sustainability Policies, Codes and Standards6%-8%
2Energy Rates, Tariffs and Supply Options5%-7%
3Energy Audits and Instrumentation7%-11%
4Energy Accounting and Economics6%-10%
5Electrical Power Systems and Motors7%-11%
6Lighting Systems5%-7%
7HVAC Systems and Building Envelope10%-16%
8Building Automation, Controls and Artificial Intelligence Systems6%-10%
9Energy Storage Systems3%-5%
10Boiler and Steam Systems4%-6%
11Distributed Generation and Renewable Energy Systems4%-6%
12Industrial Systems6%-8%
13Operations, Maintenance and Commissioning7%-11%
14Energy Savings Performance Contracting and Measurement and Verification3%-5%

Source: AEE CEM Body of Knowledge & Study Guide v1.7 (aeecenter.org, effective 5/1/2024), referencing Body of Knowledge 2.0.

High-Weight, High-ROI Study Targets

The top four subjects by maximum weight -- HVAC and Building Envelope (up to 16%), Energy Audits (up to 11%), Electrical Power Systems and Motors (up to 11%), and Operations, Maintenance and Commissioning (up to 11%) -- together can account for up to 49% of the scored exam. Master these four cold and you have already secured a passing trajectory. The bottom four -- Storage, Boilers, Distributed Generation, and ESPC+M&V -- cap at 22% combined. Useful, but never the place to spend the most time.

Why CEM Is the Hardest AEE Exam

The breadth is what kills first-time candidates. You must be conversant in mechanical engineering (HVAC, boilers, steam), electrical engineering (motors, power factor, three-phase), economics (NPV, IRR, payback, life-cycle cost), federal contracting (ESPC, UESC), and M&V (IPMVP Options A-D). A pure ME with no electrical exposure will struggle on motor and power-factor questions; a pure EE will struggle on chillers and steam systems. CEM rewards generalists who can move fluently across all 14 subjects.


CEM Scoring: How the 700-of-1040 Cut Score Works

The number competitors most often get wrong: CEM uses a scaled scoring scale of 0 to 1040, not 0 to 100. The official passing threshold per AEE Body of Knowledge 2.0 is 700 of 1040.

  • 130 questions on the form -- 120 scored + 10 unscored, randomly placed trial items.
  • All 130 questions must be answered -- the 10 trial items are not identified, so skipping hurts you.
  • Raw correct answers convert to a scaled score between 0 and 1040 using AEE's psychometric model. Not all questions are equally weighted in the scaled output.
  • You need 700 scaled to pass -- roughly equivalent to 67-70% of scored items correct, depending on your form's difficulty mix.
  • Results are emailed within 30 days of the exam (per the CEM Candidate Handbook v2.13) -- not the 7-14 days some third-party guides claim. Candidates who fail receive a diagnostic report.
  • AEE does not publish official pass rates. Treat any specific pass-rate percentage you see online as an estimate, not an AEE statistic.

A second number to memorize: a failed CEM attempt costs $250 to retake, and AEE requires a 60-day waiting period between attempts. The $500 is the bundled application + first-attempt fee -- you do not pay it again on a retake.


The Open-Book Strategy That Most Candidates Get Wrong

CEM is open book. You may bring printed references, personal notes, and AEE-approved books into the exam. This sounds like a free pass -- it is the single biggest trap on the test.

Why Open Book Does Not Mean Easy

  • 130 questions in 4 hours = about 110 seconds per question. If you look up every answer, you finish 60 questions and run out of time.
  • Most questions are conceptual or computational -- looking them up does not save time, it just confirms what you already had to know.
  • Reference indexing is your real exam skill. You should be able to flip to any concept in your reference binder in under 15 seconds.

What to Bring to the Exam

A proven CEM exam-day reference kit:

  1. AEE Energy Management Handbook (Doty & Turner) -- the canonical CEM textbook; index it heavily.
  2. The CEM training workbook issued by your AEE-approved training program -- every formula, sample problem, and key chart pre-organized.
  3. A personal cheat-sheet binder (10-25 pages) -- your handwritten condensed notes on every subject area, organized by BoK 2.0 blueprint.
  4. A formula reference sheet with every conversion factor (kWh to Btu, MMBtu to therms, ton-hours, NPV/IRR formulas, motor-loading equations).
  5. A non-programmable scientific calculator -- required, since computers, tablets, and phones are not allowed.

The single biggest predictor of a CEM pass is reference fluency -- being able to find any concept fast.

What NOT to Bring

  • A laptop, tablet, or phone (banned at every delivery mode, including remote proctoring).
  • A programmable graphing calculator (TI-89, Nspire, and similar).
  • Pre-loaded answer keys or internet access -- banned and will result in a permanent CEM ban.

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8-12 Week CEM Study Plan

free CEM study guideFree exam prep with practice questions & AI tutor
WeekFocusDeliverables
1-2Energy accounting and economicsMaster payback, NPV, IRR, LCC; build a personal cheat sheet of conversion factors and finance formulas
3Electrical power systems and motorsThree-phase basics, power factor correction, motor efficiency, VFD economics
4HVAC systems and building envelopeChillers, boilers, AHUs, VAV/CAV, refrigerant cycle, economizers; U-value, SHGC, air sealing
5Lighting, controls, codesLED retrofit math, daylighting, BACnet/Modbus, ASHRAE 90.1/62.1/55 highlights
6AEE-approved training program (5-day premier or 4-5 day accelerated online)Take detailed notes; assemble the training workbook into your reference binder
7Industrial systems, boilers, renewablesCompressed air, steam traps, CHP economics, PV/solar thermal sizing
8M&V and performance contractingIPMVP Options A-D, ESPC vs UESC, baseline and non-routine adjustments
9Audits, instrumentation, ratesASHRAE Level 1-3 audits, utility rate structures, deregulated market components
10Mixed-domain timed practice3-5 timed 4-hour simulations using only your reference binder
11Weak-area remediation + reference indexingTab and re-index every reference for sub-15-second lookup; redo 100 weakest items
12 (optional)Final polishFinal timed simulation 5-7 days before exam; light review the day before

Official and Free Resources

  • AEE Center website (aeecenter.org) -- CEM Candidate Handbook v2.13, Body of Knowledge & Study Guide v1.7, "Becoming a CEM" eligibility page.
  • AEE CEM Online Self-Evaluation Exam -- 65 multiple-choice questions, 2-hour limit, 17 sections, $50 fee through your AEE portal. The only official AEE practice exam.
  • DOE Better Buildings Solution Center -- free case studies on energy management projects.
  • FEMP O&M Best Practices Guide -- free PDF, useful for federal-context maintenance and commissioning questions.
  • OpenExamPrep CEM Practice Bank (FREE) -- domain-weighted questions and AI explanations across all 14 BoK 2.0 subjects.

Paid Training (Often Employer-Reimbursed)

2026 AEE-approved training prices, verified on AEE Education pages:

  • Premier CEM Training Program (in-person, 5 days, 33 hours, 3.3 CEU / 33 PDH / 6.6 AEE Credits): $2,100 AEE member / $2,345 non-member (late registration: $2,200 / $2,445).
  • Accelerated CEM Online Training Program (virtual live, 4-5 days, 1.2 CEU / 12.5 PDH / 2.5 AEE Credits): $1,300 member / $1,400 non-member (late: $1,400 / $1,500).
  • AEE Energy Management Handbook (Doty & Turner) -- the canonical CEM textbook; available in print and through the AEE eLibrary (digital copies cannot be printed or accessed during the exam).
  • AEE On-Demand CEM training -- self-paced format when available.

Test-Day Logistics: Three Delivery Options

AEE delivers the CEM exam three ways in 2026 -- all are the same 4-hour, 130-question open-book exam.

Option A -- Live AEE Training With Bundled Exam

The 5-day Premier (in-person) or 4-5 day Accelerated (virtual live) training program ends with the proctored CEM exam on the final day. This is the traditional path and the most popular among first-time candidates. The training fee ($1,300-$2,345) is paid to AEE Education; the $500 application + exam fee is paid separately to AEE Certification with your eligibility application.

Option B -- Approved Testing Center

Take the exam at an AEE-approved test center independent of a live training program. You must still complete an AEE-approved training program (in-person, virtual live, or on-demand) before sitting the exam. The application + first-exam fee is the same $500.

Option C -- Remote Proctoring (ProctorU)

AEE offers remote proctoring through ProctorU for candidates who cannot travel. You install the Guardian Browser, connect through a strong wired or Wi-Fi connection (hotspots are not recommended and may be refused), and a live proctor monitors your session. The same open-book rules apply, but no electronic references -- only printed materials you can show the proctor. The fee is the same $500 for the first attempt.

Retake Policy

If you fail, AEE charges a $250 retest fee per attempt and requires a 60-day waiting period between your first and second attempt, and between any subsequent attempts. You must submit a retesting form through your AEE portal. If you pass, you are prohibited from retaking the same exam.

What to Expect on the Day

  1. For in-person: arrive 30 minutes early with two government-issued IDs. For remote: complete the ProctorU Guardian Browser setup and room scan 15-30 minutes before your start time.
  2. Lock phones, smart watches, and personal items (in-person) or remove them from your workspace (remote).
  3. Bring your reference binder, calculator, and scratch-paper allowance (in-person). For remote, have printed references ready to show the proctor.
  4. 4-hour exam, no scheduled breaks -- you may take a brief restroom break but the clock keeps running.
  5. Submit and wait. AEE emails results within 30 days through your AEE member portal.

Pacing

  • 130 questions / 240 minutes is about 110 seconds per question.
  • First pass (target 2 hours): answer every question you know. Flag uncertain items.
  • Second pass (1 hour): work flagged items with reference lookups.
  • Final pass (~30 minutes): verify, calculate any remaining numerical items, submit with 5+ minutes to spare.

Pitfalls That Fail First-Time CEM Candidates

  1. Treating open-book as a substitute for studying. Reference fluency is the asset, not the reference itself. Looking up every answer guarantees failure on time.
  2. Skipping the AEE-approved training. It is required, and it is the single best content-coverage tool you have. Self-study alone rarely works.
  3. Neglecting economics. Engineers who can solve any HVAC problem often miss NPV, IRR, payback, and LCC questions. Energy Accounting and Economics is up to 10% of the test -- that is up to 12 questions.
  4. Pure-mechanical or pure-electrical engineers ignoring the other discipline. A mechanical engineer must learn power factor and motor efficiency cold; an electrical engineer must learn chillers and the refrigerant cycle. CEM rewards generalists.
  5. Building a giant unindexed reference pile. A 600-page binder you cannot navigate in 15 seconds is worse than a 50-page binder you know cold.
  6. Underestimating M&V. IPMVP Options A-D, routine vs non-routine adjustments, and baseline-period definitions trip up first-time candidates every cycle. M&V is bundled with ESPC in BoK 2.0 subject 14.
  7. Forgetting unit conversions. kWh to Btu, MMBtu to therms, kW to hp -- these conversion errors silently fail dozens of computational items.

CEM Recertification: What Happens After You Pass

CEM is valid for 3 years. Per the AEE CEM Candidate Handbook v2.13, to recertify:

  1. Earn 10 professional credits during the 3-year cycle -- equivalent to 10 CEUs or 50 PDHs. Credits come from AEE conferences, approved courses, college credit, publishing, presenting, or related professional activities.
  2. Pay the $300 three-year renewal fee to AEE.
  3. Submit a completed Renewal Form to the Certification Renewal Director. AEE mails renewal notices in the 3rd year, six months before the December 31 expiration date.

If you let CEM lapse, the $350 reinstatement fee applies -- and after a long lapse you may be required to retake the exam under current standards. Credits earned for one AEE credential generally count toward renewing related AEE credentials, so holders of CEM + CMVP or CEM + CEA earn renewal value across credentials simultaneously.


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Career Outlook: What CEM Pays in 2026

CEM is among the most ROI-positive credentials in energy management. The U.S. Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS), May 2025 (released April 2026) reports the following national median annual wages for the engineering occupations CEM holders typically work in:

Occupation (SOC code)BLS OEWS May 2025 MedianRelevance to CEM
Mechanical Engineers (17-2141)$104,110The most common CEM holder background; energy manager and ESCO project engineer roles
Electrical Engineers (17-2071)$120,630Second most common CEM background; power systems, motors, lighting roles
Industrial Engineers (17-2112)$101,140Industrial energy management and process efficiency roles

Source: U.S. Bureau of Labor Statistics, OEWS May 2025 (released April 2026). CEM itself is not a BLS-tracked occupation; these are the underlying engineering roles CEM holders occupy. Individual pay varies by years of experience, sector (federal vs private vs ESCO), geography, and whether the holder also carries a PE license or a second AEE credential. AEE has not published a 2025 CEM-specific salary survey; any CEM-specific salary figure not sourced to BLS or an explicit AEE survey should be treated as an estimate.

Federal and DoD Recognition

  • U.S. Navy -- Navy Energy Managers are required, at a minimum, to hold the CEM certification; junior energy managers have up to 1 year to complete it.
  • Air National Guard -- CEM is approved for continuing education units for energy and facility engineers.
  • U.S. Air Force, Army, Navy, and Coast Guard COOL -- CEM is an approved credential with reimbursement available for eligible service members.
  • GSA / FEMP -- federal energy manager positions list CEM as a qualifying credential under EISA 2007 Section 432.
  • U.S. DOE -- CEM is the first credential recognized under the Better Buildings Workforce Guidelines and is recognized as "Energy Skilled" for Home Energy Audit - Multifamily.

Resume Format

Certified Energy Manager (CEM) -- Association of Energy Engineers (AEE)
Issued [Month YYYY] -- Renewed [Month YYYY+3] -- Member ID #XXXX

Pair CEM on your resume with: energy auditing (ASHRAE Level 1-3), HVAC systems, lighting retrofits, motor systems, IPMVP M&V, ESPC, UESC, ASHRAE 90.1, BACnet, energy procurement, FEMP, DOE Better Buildings.


Frequently Confused: CEM, CEA, CEP, BEP, CMVP, CLEP

CertScopeBest Single Project
CEMBroad -- all energy managementLead a corporate energy program across 50+ buildings
CEAAudits onlyConduct an ASHRAE Level 2 audit on a 250,000 sq ft office tower
CEPProcurementNegotiate a 3-year deregulated electricity contract for a manufacturer
BEPBusiness operationsBe the customer-facing rep at a utility's commercial energy solutions desk
CMVPMeasurement & verificationDeliver IPMVP Option C verification on a 5-year ESPC project
CLEPLightingLead a campus-wide LED retrofit with networked controls

Once you hold one AEE credential, the professional credits you earn generally count toward renewing the others -- confirm details with AEE when you stack.


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Official Sources Used

  • AEE -- Becoming a CEM (aeecenter.org/certified-energy-manager/becoming-a-cem) -- eligibility table, EMIT, training requirement
  • AEE CEM Candidate Handbook v2.13 (aeecenter.org/wp-content/uploads/2024/03/CEMHandbook-2.13.pdf) -- fees, retake policy, renewal, results, scoring
  • AEE CEM Body of Knowledge & Study Guide v1.7 (aeecenter.org/wp-content/uploads/2024/03/CEM-BodyofKnowledge_StudyGuide_1.7.pdf) -- 14 BoK 2.0 subjects and weights, exam format, open-book rules
  • AEE -- Certified Energy Manager (CEM) page (aeecenter.org/certified-energy-manager) -- ANAB accreditation, ASHRAE 211, Better Buildings Workforce Guidelines, Navy requirement, Air National Guard
  • AEE Certification FAQ (aeecenter.org/aee-certifications/certification-faqs) -- ProctorU remote proctoring, Guardian Browser
  • AEE Education -- CEM Training Programs (education.aeecenter.org) -- 2026 training pricing and formats
  • U.S. Bureau of Labor Statistics, OEWS May 2025 (bls.gov/oes) -- engineering occupational wage medians
  • ASHRAE Standard 211-2018 -- commercial building energy audit criteria
  • EISA 2007 Section 432 -- federal energy manager qualification
  • IPMVP (Efficiency Valuation Organization, EVO) -- M&V protocol referenced in BoK 2.0 subject 14

AEE exam policies, fees, and exam content may change. Always verify current requirements at aeecenter.org before registering.

Test Your Knowledge
Question 1 of 5

An energy retrofit project costs $250,000 and is projected to save $50,000 per year in utility costs. What is the simple payback period?

A
2 years
B
3 years
C
5 years
D
10 years
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