White Paper: How performance-based procurement can boost new construction program savings

Most utility new construction programs depend on modeled projections and deemed savings based on individual technologies. The industry has established ways to evaluate these programs based on the promise – not the actual performance – of these buildings post-occupancy. Deeper savings from a more integrated design with continuous performance monitoring are left on the table, locking out the higher performance for the lifetime of the building.

This paper — co-authored by Claire Cowan and Sandra Henry in 2016 — demonstrates how performance-based procurement can empower utility incentive offerings to drive deep energy savings and reduce administrative costs. The key is to incentivize a change in the building owner’s procurement process and reward actual building energy performance rather than incentivizing specific measures. The paper looks at strategies to transition new construction programs from technology-based verification to actual measurement of performance outcomes.

This publication also provides practical guidance for utility program managers about how to apply the Accelerate Performance approach to supplement their current new construction program offerings.