In a recent NRDC report entitled “Putting Your Money Where Your Meter Is,” pay-for-performance (P4P) efficiency programs in the United States are put under the microscope. And for good reason. With efficiency programs in the United States spending almost $8 billion annually to reduce energy waste, there is a need to accelerate energy efficiency nationwide, particularly in the private sector. The report analyzes leading P4P programs to determine whether or not these programs are increasing energy savings and stimulating innovation.
While the concept of P4P is not new—it has existed in various forms for more than 25 years—many of the historical programs were “widget-focused.” Encouragingly, newer P4P models are focused on comprehensive whole-building programs which achieve deeper savings levels.
NRDC’s report includes 22 case studies of past and current P4P approaches and Metrus is pleased to be included in this nationwide survey. With operational efficiency projects spanning from Hawaii to New Hampshire, Metrus’ P4P program uses its Efficiency Services Agreement (ESA) to develop, finance and own comprehensive whole-building (and often portfolio-wide) upgrades.
The report recognizes that “private investors and companies may have more flexibility to experiment and take on performance risk than utilities.” A key take-away is that P4P models are a necessary tool to use in order to capture the full scope of energy efficiency across all market segments. You can download a copy of the report here: https://www.nrdc.org/resources/putting-your-money-where-your-meter