Measurement and Verification

Measurement and Verification (M&V) is the practice of ensuring that energy reduction initiatives are in fact saving as intended. Energy Performance Contracts (EPCs), renewable energy projects, and other energy efficiency initiatives must be closely monitored to ensure goals are met and State dollars are utilized effectively. The DGS Energy Office offers comprehensive Measurement and Verification (M&V) services to State agencies to ensure energy and cost savings of energy efficiency projects.

Prior to implementing an EPC, DGS works with contractors to establish an appropriate baseline year against which to measure future changes in usage and cost. DGS relies heavily on the online EnergyCAP database to access utility records. Contractors must present a detailed M&V Plan for DGS review and approval, prior to implementation of any efficiency measures. While contractors are required to provide an annual report documenting performance of installed energy efficiency measures, DGS provides a second check to verify that contractors’ reported results are accurate and in accordance with the State’s written specifications.

Should DGS determine that annual avoided cost targets have not been achieved, the contractor must compensate an agency for the shortfall. This process ensures that an agency’s operating budget, from which utilities and project financing are covered, is not adversely affected by a project which fails to perform as guaranteed.

Other uses of M&V include demonstrating performance of renewable energy installations and trending chilled, hot water or steam consumption, and electricity and natural gas usage in State buildings.