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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