New York Pay-for-Performance Program Offers Energy Savings Packages for Select Businesses

by | Aug 7, 2019

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Under a new program, New York State Energy Research and Development Authority (NYSERDA) and Con Edison will work with energy efficiency service providers to seek out small and medium-sized businesses and offer energy-savings packages that could include lighting, heating, cooling, refrigeration and building control systems.

The pay-for-performance pilot program, called Business Energy Pro, will leverage Con Edison’s smart meter technology to measure energy efficiency savings at small and medium-sized businesses in Staten Island and Westchester County and reward the providers based on those measurements. The program supports the New York State Climate Leadership and Community Protection Act, which calls for 100% clean electricity by 2040 and economy-wide carbon-neutrality.

For energy efficiency providers, Business Energy Pro will provide flexibility, minimizes transaction and administrative costs, and supports innovative solutions and services. The providers will receive payments based on the energy savings that are confirmed by the customers’ smart meters.

Business Energy Pro will target approximately 60,000 Con Edison small and medium-sized business customers in Staten Island and Westchester County, the areas where Con Edison first began to install smart meters.

Pay-for-performance models have begun to emerge nationally with significant potential benefits to customers, energy efficiency service providers and utilities. The pay-for-performance model differs from more traditional energy efficiency incentive programs that provide rebates to business customers based on the type of upgrades installed, rather than on the actual savings. The pay-for-performance model in Business Energy Pro is intended to incent energy efficiency service providers and customers to choose comprehensive packages of energy efficiency upgrades.


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