The project

SENSEI has been investigating the use of Pay-for-Performance (P4P) schemes to aggregate retrofit projects, improve the effectiveness of subsidy programmes, and reward energy efficiency as an energy resource and a grid service. P4P schemes have been applied in the U.S. for many years and based on the lessons learned, SENSEI has been developing knowledge and insights into how P4P can benefit market players such as ESCO’s, building owners and energy providers and not least, how improving energy efficiency rates can help us all reach the climate goals and mitigate the energy crisis.

As SENSEI has been the first project to investigate P4P in an EU context, the research is a key source of knowledge for interested parties. The project ended in February 2023 but, the website will stay live until September 2025. Check out the video below for a recap and go to our P4P research community.

Energy-Efficient Buildings

Experience and lessons learned from Pay-for-Performance (P4P) pilots in the US

In the United States, several energy utilities have recently piloted and launched buildings P4P programmes, making use of possibilities offered by energy metering technologies that provide greater certainty over energy savings and drive improved performance. These P4P schemes reward end-users or aggregators for delivering energy savings, measured against a business-as-usual scenario.

Compared to traditional energy efficiency programmes:

  • The performance risk is shifted from those who fund the programmes (taxpayers or bill payers) to the private sector (energy service providers or aggregators);
  • The incentive is redirected from installing as many equipment as possible to obtaining as many energy savings as possible.

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