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LighTec Chosen To Be P4P Partner
New Hampshire Pay for Performance Program
Program Summary
Overview
The Pay for Performance Program comprehensively addresses the energy efficiency needs of the commercial and industrial sector by working with participants, such as developers, building owners and their representatives, to improve energy efficiency of commercial and industrial buildings. The Program is implemented through a network of qualified Program Partners. Partners will be selected based on their demonstrated experience to develop comprehensive energy efficiency work scopes in commercial and industrial facilities, oversee the installation of the proposed scope, and verify that the installation will achieve the estimated energy performance.
The New Hampshire Pay for Performance Program is funded via the Greenhouse Gas Emissions Reduction Fund (GHGERF), which consists of proceeds from the auction of carbon allowances through New Hampshire’s participation in the Regional Greenhouse Gas Initiative (RGGI), an effort by 10 Northeastern and Mid-Atlantic states to reduce emissions of greenhouse gases from the electric power sector.
Eligibility
Commercial and industrial facilities in New Hampshire that have electric demand of ≥ 100 kW (in any of the previous 12 months) and/or annual fuel consumption of ≥ 1,000 MMBTU for space or process heating. Municipalities, universities, K-12 schools and other institutional facilities are also eligible.
Incentives
Incentives will be paid out on the following three payment schedule:
· Incentive #1: $0.10/square foot of conditioned space, capped at $40,000.
o Designed to defray, but not necessarily cover, the cost of the Energy Reduction Plan development. To be paid on approval of Energy Reduction Plan and proof that construction has begun.
· Incentive #2 : $0.19/kWh saved and $20.00/MMBTU saved
o Based on projected savings and paid at construction completion.
· Incentive #3: $0.05/kWh saved and $5.00/MMBTU saved
o Based on actual energy savings performance one year post construction.
Total performance incentives (#2 and #3) will be capped at $200,000 or 50% of project cost on a per project basis. In addition, there is an annual entity cap of $500,000 where entity is defined as a single building owner (municipality, private business, School Administrative Unit, …).
Energy Reduction Plan
All projects are required to have an Energy Reduction Plan (ERP) completed by an approved Program Partner. The Energy Reduction Plan includes all components of traditional energy audit plus a financing plan and construction schedule. In addition, projects are required to develop an energy model of the building using an ASHRAE-compliant simulation software program.
The proposed work scope must project at least a 15% reduction in total facility source energy consumption, using EPA’s Portfolio Manager benchmarking tool to set the baseline. The work scope must be comprehensive and include at least two distinct energy efficiency measures. Renewable energy may be a component of the project but does not contribute to the 15% savings threshold and is not covered under the Performance Incentives (#2 & #3). A combined heat and power (CHP) plant may be included as a measure but cannot contribute more than 10% to the 15% savings threshold.
Projects will be required to have an overall internal rate of return (IRR) of at least 10%. Individual energy efficiency measures may fall below this cost effectiveness threshold but the overall work scope must have an IRR of 10% or higher.
Leveraging
Projects may access funding from other sources (e.g., NH Core Utility Programs) and total incentives from all sources cannot exceed 75% of total project cost. Projects may finance the remaining cost of the energy efficiency work scope through loan programs (e.g., CDFA).
Contact Information
NH Pay for Performance Program
TRC Energy Services
155 Fleet Street, Suite 305
Portsmouth, NH 03801
603-766-1913
NHP4P@trcsolutions.com
