Administrator
DC Sustainable Energy Utility (DCSEU)
Program name
Commercial & Institutional — Pay for Performance (C&I P4P)
Program summary
The C&I P4P track focuses on large, commercial, and institutional existing buildings that are undergoing complex, multi-measure efficiency projects, including those with behavioral or operational changes. Projects with these types of measures are challenging to analyze with traditional prescriptive or custom savings calculations.
Applicable building size
Priority for buildings over 100,000 sq. ft.
Opportunity
Incentives for energy conservation measures are based on pre- and post-project metered data to determine actual energy saved. The P4P program is designed for commercial and institutional buildings larger than 100,000 sq. ft. that have completed or are undergoing complex, multi-measure, behavioral, and/or operational changes. Electricity and gas target project savings should be greater than a 5% reduction of total energy consumption.
Funding
- Type of incentive/funding. Rebate.
- Incentive/funding details. Incentives are paid based on pre- and post-metered energy usage data and market rate DCSEU yields ($/MWh and $/MMBtu).
- Contract structure. DCSEU and client/customer enter an incentive agreement based upon estimated savings for evaluated ECMs. The Customer agrees to purchase and install agreed-upon ECMs and allow the DCSEU to review historical and post-installation energy usage data. After an agreed-upon duration of data review, the DCSEU will pay out an incentive to the customer based on the realized energy savings.
- Amount (max, min, average). Incentives greatly vary based on measures taken and energy savings realized.
- Simple payback. Available on a case-by-case basis after the scope of work (SOW) has been shared.
- Tax and balance sheet. Taxable; W9 is required by the DCSEU for payment.
- Pairing with other sources. The DCSEU incentive is intended to offset the incremental cost of purchasing more-efficient equipment and does not prohibit the use of other forms of project financing (e.g. DC Green Bank, DC PACE, traditional loan, self funding).
Process
- When in the project process an application should be started/completed. As early as possible, preferably before the work is started when the plans are being drawn so that the DCSEU can help the customer choose more-efficient options. The process is started by a review of historical energy usage (12-24 months).
- Level of effort required. An official audit is not required, but customer must share project scope of work (SOW), any vendor estimates of savings or energy models, and also have discussions with the DCSEU to provide evidence for implemented energy savings measures (e.g. setpoint changes, setbacks, changes in operations).
- Time to receive funding. After agreed-upon implementation period, an incentive is paid to the customer for verified energy savings. The implementation period is project dependent.
- Contractor requirements. The DCSEU has a selection of P4P Preferred Partners who have qualified under an RFQ that examines their capacity and technical capability to demonstrate and prove transparent, persistent energy savings, but the customer can choose to implement measures internally or through their own vendor.
Additional information
- Advantages. Actual savings are determined through this program. Customer is incentivized to ensure that projects’ energy savings goals are met.
- Disadvantages. Incentive is not paid until after an agreed-upon post implementation period, which may be up to one year.
- Ownership types or organizations are best suited for the program. All ownership types are suited that qualify as electric and/or natural gas utility ratepayers in the District of Columbia.
- Program fit for customer. Customers implementing complex, multi-measure efficiency projects, including those with behavioral or operational changes.
Take action
Contact DCSEU at info@dcseu.com or (202) 479-2222