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PG&E Launches $20 million Residential P4P

Pay for Performance efficiency just got even more real.

PG&E has announced that it’s looking for qualified residential energy efficiency aggregators to join a two-year pay-for-performance program starting in 2018. Firms need to submit their interest by November 6, 2017.

With up to $20 million available for customer rebates, this new round of P4P is a game changer. Round one helped us understand the challenges of getting P4P off the ground. Round two is where energy efficiency starts looking like a grid resource.

While PG&E's announcement is a big step forward for efficiency in California, it's also part of a larger, accelerating trend toward metered pay for performance that's happening across the country.

So What is "Pay for Performance?"

Until now, most efficiency programs have worked by offering up-front incentives to customers to upgrade their buildings in order to save energy. Savings were estimated through complex engineering models, and often never verified. As a result, the efficiency marketplace has been riddled with uncertainty, making it difficult to attract private investment at the scale needed.

By contrast, pay-for-performance markets reward providers of efficiency based on actual, metered results.

Open source EEmetering makes it possible

In order to standardize savings results, PG&E will be calculating efficiency using the open source CalTRACK methods and paying aggregators (businesses that manage bundles of efficiency projects) based on the results they achieve.

The OpenEEmeter deploys a reference version of the CalTRACK methods and calculates energy savings by comparing a building's energy consumption, normalized for weather, before and after an intervention or retrofit. Because it's open source, you can be confident that the savings calculations reflect the assumptions of the underlying methods.

All sides have access to the OpenEEmeter, either through OpenEE's low-cost SaaS Enterprise Platform or by downloading the free OpenEEmeter CLI tool and running your own calculations. In addition to P4P, the OpenEEmeter offers efficiency providers tangible feedback on which kinds of projects or customers deliver the greatest savings, and which show sub-par performance.

With this new offering, PG&E has taken a big forward step for efficiency--one that could represent a turning point for how efficiency is done, both in California and across the country.

Do you represent a utility looking to get into pay for performance? Are you an efficiency provider wondering how you can profit from this change? Contact us to set up a demonstration of our SaaS Enterprise Platform.