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This report examines the history of pay-for-performance (P4P) energy efficiency approaches. As the report describes, there is a diverse spectrum of pay-for-performance programs but, at the most basic level, these programs track and reward energy savings as they occur, usually by examining data from a building's energy meters -- as opposed to the more common approach of estimating savings in advance of installation and offering upfront rebates or incentives in a lump-sum payment. The report finds that P4P has some important opportunities for increasing energy savings, but also key limitations that will need to be better understood through piloting and experimentation.
This Guide is designed to help state and local policymakers to take full advantage of new policy developments by providing them with a comprehensive set of tools to support launching or accelerating residential energy efficiency programs. The Guide focuses on four categories of policies that have proven particularly effective in providing a framework within which residential energy efficiency programs can thrive: incentives and financing, making the value of energy efficiency visible in the real estate market, data access and standardization, and supporting utility system procurement of energy efficiency.