When properly applied, measurement and verification (M&V) strategies ensure that full value is being realized from equipment and building improvements that are part of an energy savings performance contract (ESPC). This week’s spotlighted grantee question concerns the appropriate level of M&V for ESPC projects.

How much M&V is necessary for the energy conservation measures (ECMs) that will be implemented in our project?

Credibility is key. You, as the facility owner, should feel certain that you can accurately measure and verify all energy savings from installed equipment and improvements. You can typically measure and verify energy savings using the International Performance Measurement and Verification Protocol (IPMVP). If there are numerous ECMs installed in a building, the “Option C” approach (whole-facility level measurement) is preferred. Otherwise, for verification of specific ECMs, you can determine the savings by taking and comparing before and after measurements.

It is important to understand that you can reconcile each year’s energy savings against the guaranteed values by factoring in adjustments. To compare the actual energy usage to the base year usage, adjust the baseline to show what it would have been for the year prior. You can make adjustments to reflect significant changes, such as extreme weather variations, that did not occur during the base year. Similarly, if occupancy or operating hours of the facility have dramatically changed, adjust the baseline accordingly.

The Department of Energy’s technical assistance team is available to provide support in developing the proper level of M&V for your facility. For questions regarding M&V or any other aspect of ESPCs, please submit a comment to this post or contact a Technical Assistance Provider.

Content for this Blog post courtesy of Sentech-SRA/ICF International