Designing and Executing Measurement and Verification Standards for C-PACE Programs: Lessons Learned from Leading C-PACE Programs

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Policy Brief

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This brief, Designing and Executing Measurement and Verification Standards for C-PACE Programs: Lessons Learned from Leading C-PACE Programs, examines and explains practices to demonstrate energy savings in existing Commercial Property Assessed Clean Energy programs. The brief is designed to inform C-PACE program administrators on the design and execution of measurement and verification (M&V) standards through the experience of C-PACE programs in Michigan, Texas, and Wisconsin.

In addition, the brief includes case studies of C-PACE programs: Texas PACE, Lean & Green Michigan, and PACE Wisconsin. Each case study details that program’s technical standards related to measurement and verification (M&V), examines the program’s motivation for implementing those technical standards, and reports on the program administrator’s experience with those standards. Key findings include:

  • Look to other states and jurisdictions for lessons learned on designing and executing M&V standards for C-PACE programs. The case studies presented illustrate some of these lessons.
  • Consider what each standard will require in terms of compliance for the property owner and enforcement for the program administrators. Successful standards strike a balance between ensuring project performance and avoiding burden on participants.
  • Put a mechanism in place to enforce each standard, or at least to effectively encourage property owners to comply. Enforcement of ongoing reporting requirements is especially difficult once the C-PACE loan has been fully funded.
  • Consider methods to simplify annual performance reporting processes. For example, after the property owners approve releasing their consumption data, program administrators can work with utilities and/or property owners to automate the process of transferring that data from utility feeds or building management systems for ongoing reporting.
  • Standardize M&V practices across programs to the extent possible to encourage participation by building owners, contractors, capital providers, and third-party program administrators.
  • Communicate the value proposition of M&V to property owners by framing M&V as a mechanism that ensures projects deliver the intended outcomes and benefits, rather than as a technical obligation. 

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