To determine whether initial facility improvement costs were paid back by the reduced operational costs resulting from the improvement projects, this study examined the relationship between initial costs and operational costs of fourteen school buildings improved during the 1978-79 school year in Greenville County, South Carolina. With energy conservation as a goal, windows were replaced, roofs were insulated and HVAC systems were modified or replaced. Estimated annual dollar savings (from electricity payment records) were divided into the amount spent on improvement to determine the number of years required for payback. The findings indicated that ten of the fourteen buildings became more energy efficient and eight were able to pay back the initial improvement costs within their expected life span. A relationship between initial improvement costs and operational costs of school buildings was supported in that the initial costs of improvement could be repaid by the resultant reduction in operational costs. A brief review of the literature is included, which also supports these findings by showing instances of life-time savings resulting from comparatively higher initial construction costs. (Author/MLF)