Measurement and Verification or “M&V” is a robust, systematic way of statistically estimating benefits like avoided energy or water consumption. We use M&V to help verify the energy and bill savings from energy efficiency upgrade projects and access government incentives for our clients through Schemes like the NSW Energy Savings Scheme (ESS) and the Victorian Energy Upgrades Scheme (VEU). Formal M&V ensures reported energy savings are genuinely the result of an upgrade. Other approaches (such as before and after bill comparisons) don’t distinguish as effectively between real energy savings and coincidental changes in energy bills (for an example due to due to unrelated factors, like milder weather or reduced operations).

Anyone implementing an ESS eligible energy savings project can claim energy savings certificates using PIAM&V. It is also important to complete thorough M&V planning as early as possible prior to implementation to verify PIAM&V will be feasible. The detailed eligibility criteria of the ESS are defined in the ESS Legislative framework and method specific guide which can be found here. However, some of the main requirements include:

 the upgrade project is implemented in NSW (there are similar schemes to the ESS in other states – see below).
 a valid ESS nomination form has been signed before the project is implemented.
 the energy savings from the project are not the result of complying with regulatory requirements or reducing the service levels of the equipment being upgraded.
 excluded NSW activities include solar PV and fuel switching (these are eligible in Victoria).

Subsidies come from the sale of Energy Savings Certificates to Energy Retailers (and wholesale market participants). These parties are legally required to obtain energy savings certificates corresponding to a share of the wholesale energy they buy. The energy savings delivered by the scheme help lower wholesale electricity prices and network costs, more than offsetting the small charges retailers spread across everyone’s energy bills to recover certificate costs.

The time it takes to obtain ESS incentives depends on the type of energy efficiency upgrade and the time of year it is implemented. PIAM&V is designed for more complex projects with larger savings than lighting. The resulting additional level of measurement rigor required by the Government typically results in longer wait times to access subsidies. For projects where energy consumption is influenced by weather or seasons (e.g. HVAC projects, or seasonally dependent tourism or agricultural sites), it can take 9 to 12 months to obtain sufficient measurements and create certificates after the project is implemented. For industrial projects, if consumption is based on short year-round production cycles, it can take closer to 3 to 6 months.

The data required for M&V is typically built into our quoting and sales process, using systems from our independent M&V partner Intragrid. This typically includes basic details about the location and type of buildings, equipment, and energy using activities on site, data on electricity and gas consumption before and after the upgrade.