Upcoming Important Program Dates:

NEW Example projects with Savings Information are now available on the Program Documents Section.

• May 23rd - Monthly Partner Call, 10-11 AM

What is the NH Pay for Performance Program?

The Pay for Performance Program comprehensively addresses the energy efficiency needs of the commercial, industrial, and municipal government sectors by working with participants, such as developers, building owners and their representatives, to improve energy efficiency of commercial and industrial buildings. The Program is implemented through a network of qualified Program Partners. Partners will be selected based on their demonstrated experience to develop comprehensive energy efficiency work scopes in commercial and industrial facilities, oversee the installation of the proposed scope, and verify that the installation will achieve the estimated energy performance. The New Hampshire Pay for Performance Program is funded through proceeds from the Regional Greenhouse Gas Initiative (RGGI), an effort by 10 Northeastern and Mid-Atlantic states to reduce emissions of greenhouse gases from the electric power sector.

The Greater the Savings, the Greater Your Incentives

Take a comprehensive, whole-building approach to saving energy in your existing NH facilities and earn incentives that are directly linked to your savings. Pay for Performance relies on a network of program partners who provide technical services under direct contract to you. Acting as your energy expert, your partner will develop an energy reduction plan for each project with a whole-building technical component of a traditional energy audit, a financial plan for funding the energy efficient measures and a construction schedule for installation.

Tell Me More...

Looking for more information on eligibility, incentives, and the steps to getting involved? We recommend that you read over the Program Overview page to get started.  

Program Documents

We're working on getting all program documents finalized and published on this page very soon.

Program Overview Documents

• NH Pay for Performance Program Summary
• NH Pay for Performance Program Alternate Path Summary
• Steps to Participate in NH P4P Program
• Steps to Participate in Alternate Path NH P4P Program
• Office Building Project Example
• School Building Project Example

Program Enrollment & Application Documents

• NH Pay for Performance Program Application
• Project Participant W-9 Form - Required to be submitted by the participant for each project
• Alternate Path NH Pay for Performance Application Spreadsheet

Program Partner Documents

• Partnership Agreement
• Project Case Study Template - Please make copies of this template and submit your case studies in the format provided.
• Project Submittal Checklist - Please use this checklist to make sure you have submitted all the required documentation and include this checklist with your submission.

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Approved Program Partners

NH P4P - Frequently Asked Questions

ELIGIBILITY

What constitutes program eligibility?
Pay for Performance is available to existing commercial, industrial and institutional buildings with electric demand of ≥ 100 kW and/or annual fuel consumption of ≥ 1,000 MMBTU for space or process heating - including hotels, large office buildings, multi-family buildings, supermarkets, manufacturing facilities, schools, shopping malls and restaurants. Are large energy users required to reach the 15% savings target?
An exception to the 15% energy use reduction requirement for participation will be made for high energy intensity customers. This exception will be limited to sectors such as manufacturing, pharmaceutical, chemical, refinery, packaging, food/beverage, data center, transportation, mining/mineral, paper/pulp, biotechnology, etc. The manufacturing and/or processing loads use should be equal to or greater than 50% of the total metered energy use. Instead of the 15% savings requirement, the project must deliver a minimum energy savings of 4% of total facility consumption and must deliver a minimum energy savings of 100,000 kWh or 350 MMBTU. Exceptions must be pre-approved by TRC.

INCENTIVES

To whom are the incentives paid?
Incentives are paid to the participant (customer). Can the incentive payments be assigned to partners?
No, the partner will be paid by the participant. Under certain programs, the partner must be paid and documentation must be provided prior to the participant receiving an incentive payment. Will Pay for Performance work this way?
The partner must ensure the contract structure with the participant covers this item. Are the incentives adjustable or fixed per project?
There will be three incentives. Incentive #1 is based on the size of the facility and Incentives #2 and #3 are based on the level of savings in kWh and/or MMBTU. View a detailed Incentive Structure on the program overview page. What if actual post-retrofit savings are higher than estimated?
Incentive Payment #2 represents roughly 75% of the total performance incentive, based on estimated savings predicted by the simulation results. Savings in excess of (or less than) the estimate will result in a re-calculation of the total performance incentive. This will be “trued-up” with Incentive Payment #3. The payment per kWh and MMBTU saved is for what period?
Incentive payments #2 and #3 are based on annual electric kWh and fuel savings, as applicable (not to exceed 50% of total project cost). What incentives can be expected for a multi-building (campus type) situation where there are only two meters?
The entire campus must be treated as one project, unless sub-metering has been established. The 15% savings will be achieved on a campus-wide level and one set of incentives will be paid out. The established incentive cap will remain $300,000 per project, not to exceed the annual entity cap of $750,000 where entity is defined as a single building owner (municipality, private business, School Administrative Unit, etc.). How much of a reduction in kWh (or MMBTU) is required to receive an incentive?
A minimum of 15% source energy reduction is required, which can be achieved through a combination of electric, gas and other fuel source reductions, but incentives will only be paid for electric and natural gas savings. What are the 15% savings based on?
The 15% savings represents source energy savings (estimated Btu site energy savings converted to Btu source energy) and can include electric, natural gas and other fuels (i.e. fuel oil, steam, chilled water, etc.). Do other available incentives jeopardize Pay for Performance incentives?
You may use other program's incentives (e.g. NH Core Utility rebates) to reach the 15% savings reduction target, however, given that you are already being paid for those savings through another program, you will not be paid for the same savings through the NH P4P program. Therefore, other available savings will be removed fromt the incentive payments calculation - so as to avoid double counting those savings. What is the average amount in incentives expected for a typical project?
The average incentive per project is roughly 40% of the total project cost.

ENERGY REDUCTION PLAN

What if the 15% source savings cannot be met after the audit is performed?
If the project cannot meet the 15% source savings then the non-modeling approach may be taken. This requires that the project include at least two distinct energy efficiency measures and a minimum savings of 50,000 kWh or 250 MMBTU. What is the reason behind the 15% source savings not being allowed from a single energy conservation measure?
Pay for Performance is designed to be comprehensive in nature, thus savings are anticipated to be provided by multiple energy conservation measures. If savings are anticipated to be derived from a single measure (such as lighting), the participant should be referred to the prescriptive or custom tracks offered as part of the NH Core Utility Programs. Can PV panels and other renewable projects contribute to the 15% savings?
No. Renewable measures that generate power cannot be included in the 15% savings. The NH PUC offers financial incentives for Commercial and Industrial Renewable Energy systems, details can be found at http://www.puc.state.nh.us/Sustainable%20Energy/RenewableEnergyRebates-CI.html Once I complete my energy reduction plan am I required to continue with the rest of the program?
You are not required to continue with the program, but you will not receive Incentive #1. Incentive #1 is distributed contingent on the installation of the energy efficient measures outlined in your energy reduction plan. Is it a requirement that all energy conservation measures evaluated must be implemented?
The decision on implementation of energy conservation measures (ECMs) is to be determined by the participant with input from the partner. It is not a requirement that all ECMs be implemented as long as the ones selected yield the minimum 15% savings. Section III of the ERP requires a list of recommended ECMs (with associated savings), and listing of non-recommended ECMs with an explanation as to why these are not included. Any change in the list of ECMs to be installed after ERP approval requires approval from the program manager. Can energy savings from operation & maintenance items be included (e.g. if economizers are not working)?
Retro-commissioning type items may be incorporated into the ERP, however savings estimates associated with these should be well documented. What about electric demand reduction measures (e.g. thermal storage)?
Pay for Performance is designed for, and provides incentives for, energy reduction measures. Electric demand reduction measures may benefit the participant and can be included in the ERP, however no incentive is specifically associated with demand savings. Is the use of Portfolio Manager required?
Yes. The data entered into Portfolio Manager provides pre- and post-benchmarking for the project, including the actual source energy reduction. What effect would a change in operating hours have on the project?
If a substantial change in operating hours occurs during the construction and/or post-retrofit period, this change would be accounted for by documenting the changes and adjusting the hours of operation in Portfolio Manager. In some cases, a change to the baseline simulation model may also be required. Contact program representatives. Since the program is designed around utility billing history, how will the Partner get this when in many cases this goes to corporate management offices?
The program manager (TRC) is available to facilitate the process; however partners will need to make arrangements with the participant to obtain the utility history. Will utility release forms be available?
Yes, utility release forms can be obtained by contacting the program manager (TRC). Is it a requirement to meter each piece of equipment?
Any existing equipment or recommended measure that cannot be incorporated into the simulated building model will require pre and post metering. Have your partner refer to the program guidelines. Is the internal rate of return calculated on an individual energy conservation measure basis, or on a total project basis?
The internal rate of return for the entire project must be 10% or greater. There is no IRR requirement for individual measures. What can be included in total project cost?
Partner fees, equipment and installation costs, design fees, construction management, measurement and verification / commissioning fees are included. What if another energy conservation measure is found during the construction phase?
This would be considered a scope change and may require re-submittal of the ERP. The performance incentives would be recalculated to include the additional estimated energy savings. Can the participant choose a different partner after the energy reduction plan has been submitted and approved?
The participant can choose to change partners. Partners should make certain that their contract covers this situation so they are paid for their services. Should the participant choose not continue in the Pay for Performance Program, the funds associated with Incentive #1 must be returned by the participant.

IMPLEMENTATION

What types of bid and/or construction documents are required?
The partner role is to perform services as necessary to ensure that the measures are bid, designed, and installed as presented and modeled in the ERP. Submission of these documents is not required. What happens if construction costs are higher than those estimated, which would lead to a lower internal rate of return?
Pay for Performance only considers the initial cost and internal rate of return provided in the ERP. This will not be modified. If a participant requires a multiple bid process and must select the low bidder, which is not the partner, is the applicant still entitled to Incentives #2 and #3?
The participant can only receive Incentives #2 and #3 if an approved partner remains with the project in some capacity. Partners should be aware of the procurement requirements of the participant to guard against this.

POST-CONSTRUCTION BENCHMARKING

What happens if the building becomes vacant, or if there is a shift in operation due to economic issues, after the baseline is developed?
This must be adjusted in Portfolio Manager pre- and post-benchmarking data. There will be a case-by-case review if this causes source savings to drop below the required 15%. What happens if the 15% source energy reduction target is not met after the post-construction benchmarking?
If the minimum 15% savings is not met using 12 months of post-construction billing history, then an additional 6 months will be allowed to accomplish this goal. If, after the 18 month period the reduction is not met, Incentive #3 will not be paid. Incentives #1 and #2 are not in jeopardy. Certain programs allow payment in shorter time period if performance criteria are met (i.e. 6 months' worth of billing history), will the NH P4P program allow this?
No. Incentive #3 will be calculated based on 12 months of post-construction utility bills.

Contact the NH P4P Project Team

NH Pay for Performance Program Overview

The Pay for Performance Program [P4P] comprehensively addresses the energy efficiency needs of the NH commercial, industrial, and municipal sectors by working with participants in a three-step process to improve the energy efficiency of their facilities. P4P is executed through a network of qualified Partners, selected based on their experience and their demonstrated ability to service energy customers throughout the process: plan and develop comprehensive energy efficiency solutions and projects, oversee installation, and verify that the installation will achieve the estimated energy performance.

Pay For Performance Incentives

Pay for Performance incentives are awarded upon the satisfactory completion of three program milestones:

Alternate Path Approach

This approach is offered to those projects that cannot reach 15% reduction and/or are not good candidates for building modeling. Under the approach, projects must meet the following requirements:

• Must include at least two distinct energy efficiency measures.
• Minimum savings of 50,000 kWh or 250 MMBTU.
• Use of customized set of Excel-based forms for submitting project along with backup information illustrating savings calculations.
• Measurement and Verification plan required and must be pre-approved. (no Incentive #3, Incentive #2 would be paid upon completion of Measurement and Verification)
• Two incentives are offered at the following amounts and schedule:

Incentive Caps: Total performance incentives (#2) will be capped at $300,000 or 50% of project cost on a per project basis. In addition, there is an annual entity cap of $750,000 where entity is defined as a single building owner (municipality, private business, School Administrative Unit, etc.).

Eligibility

• NH commercial, industrial and municipal facilities with electric demand of ≥ 100 kW and/or annual fuel consumption of ≥ 1,000 MMBTU for space or process heating.
• Universities, K-12 schools, hospitals, and other institutional facilities are eligible.

Requirements

• Projects are required to either:
  • Develop an energy model of the building using an ASHRAE-compliant simulation software program
                                                                                         OR
  • Follow the non-modeling approach, for those projects that cannot reach 15% reduction and/or are not good candidates for building modeling.
• The proposed work scope must project at least a 15% reduction in total facility source energy consumption, using EPA’s Portfolio Manager benchmarking tool to set the baseline.
• Projects must have an overall internal rate of return (IRR) of at least 10%. Individual energy efficiency measures may fall below this cost effectiveness threshold but the overall work scope must have an IRR of 10% or higher.

Industrial, Manufacturing, & Other High Energy-Intensity Customers

An exception to the 15% energy use reduction requirement for participation will be made for high energy intensity customers. This exception will be limited to sectors such as manufacturing, pharmaceutical, chemical, refinery, packaging, food/beverage, data center, transportation, mining/mineral, paper/pulp, biotechnology, etc. The manufacturing and/or processing loads use should be equal to or greater than 50% of the total metered energy use. Instead of the 15% savings requirement, the project must deliver a minimum energy savings of 4% of total facility consumption and must deliver a minimum energy savings of 100,000 kWh or 350 MMBTU. Exceptions must be pre-approved by TRC.

ENERGY STAR Portfolio Manager

Pay for Performance takes advantage of the ENERGY STAR Program with Portfolio Manager, EPA's interactive tool that allows facility managers to track and evaluate energy and water consumption across all of their buildings. The tool provides the opportunity to load in the characteristics and energy usage of your buildings and determine an energy performance benchmark score. You can then assess energy management goals over time, identify strategic opportunities for savings, and receive EPA recognition for superior energy performance. This rating system assesses building performance by tracking and scoring energy use in your facilities and comparing it to similar buildings. That can be a big help in locating opportunities for cost-justified energy efficiency upgrades. And, based on our findings, you may be invited to participate in the Building Performance with ENERGY STAR initiative and receive special recognition as an industry leader in energy efficiency.

Energy Reduction Plan

The Energy Reduction Plan is more than an audit – it builds both a customized financing plan and construction schedule into a comprehensive building energy audit conducted by a certified experienced professional.

Leveraging Funding Sources

Projects may access funding from other sources (e.g., NH Core Utility Programs) and total incentives from all sources cannot exceed 75% of total project cost. Projects may finance the remaining cost of the energy efficiency work scope through loan programs (e.g., CDFA).