Pay for Performance

Pay For Performance Pays 70% of Cost!

Hutchinson Mechanical Services is a Participating Contractor in NJ’s Pay for Performance program, a comprehensive energy efficiency program that provides incentives towards whole-building energy improvements. Take a comprehensive, whole-building approach to saving energy in your existing facilities and earn incentives that are directly linked to your savings. Get paid to make your building better! There are incentives for existing buildings and new construction.

Existing Building Incentives

The Existing Buildings component is designed for commercial, industrial, and multifamily buildings with a peak demand in excess of 200 kW in any of the preceding twelve months. Save 15% or more on the energy consumption in your buildings with the help of our Approved Partners and receive incentives along the way. 

Pay for Performance incentives are awarded upon the satisfactory completion of three program milestones:

• Incentive #1 – Submittal of complete Energy Reduction Plan prepared by an approved Program Partner – Contingent on moving forward, incentives will be between $5,000 and $50,000 based on approximately $.10 per square foot, not to exceed 50% of the facility’s annual energy expense.
• Incentive #2 – Installation of recommended measures – Incentives are based on the projected level of electricity and gas savings, which will be “trued-up” after one year based on actual savings.
• Incentive #3 – Completion of Post-Construction Benchmarking Report – A completed report verifying energy reductions based on one year of post-implementation results is required. Incentives for electricity savings and natural gas savings will be paid based on actual savings, provided that the minimum performance threshold of 15% savings has been achieved.

[ More about P4P Existing Buildings Program ]

New Construction Incentives

The Existing Buildings component is designed for commercial, industrial, and multifamily buildings with a peak demand in excess of 200 kW in any of the preceding twelve months. Save 15% or more on the energy consumption in your buildings with the help of our Approved Partners and receive incentives along the way. 

Pay for Performance incentives are awarded upon the satisfactory completion of three program milestones:

• Incentive #1 – Submittal of complete Draft Energy Reduction Plan prepared by an approved Program Partner – Contingent on moving forward, incentives are based on $0.10 per square foot up to $25,000.
• Incentive #2 – Submittal of a complete Proposed Energy Reduction Plan – Contingent on moving forward, incentives are based on $0.50 per square foot.
• Incentive #3 – Submittal of complete As-Built Energy Reduction Plan and Commissioning Report – A completed report verifying performance of energy efficient equipment. Provided that the minimum performance threshold of 15% has been achieved, incentives are based on $0.75 to $1.00 per square foot.

[ More about P4P New Construction Program ]

 

Existing commercial, industrial and institutional buildings with a peak demand over 100 kW for any of the preceding twelve months are eligible to participate including hotels and casinos, large office buildings, multi-family buildings, supermarkets, manufacturing facilities, schools, shopping malls and restaurants. Buildings that fall into the following five customer classes are not required to meet the 100 kW demand in order to participate in the program: hospitals, public colleges and universities, 501(c)(3) non-profits, affordable multifamily housing, and local governmental entities. Your energy reduction plan must define a comprehensive package of measures capable of reducing the existing energy consumption of your building by 15% or more.

Exceptions to the 15% threshold requirement may be made for certain industrial, manufacturing, water treatment and datacenter building types whose annual energy consumption is heavily weighted on process loads.
Pay for Performance takes advantage of the ENERGY STAR Program with Portfolio Manager, EPA’s interactive tool that allows facility managers to track and evaluate energy and water consumption across all of their buildings. The tool provides the opportunity to load in the characteristics and energy usage of your buildings and determine an energy performance benchmark score. You can then assess energy management goals over time, identify strategic opportunities for savings, and receive EPA recognition for superior energy performance.

This rating system assesses building performance by tracking and scoring energy use in your facilities and comparing it to similar buildings. That can be a big help in locating opportunities for cost-justified energy efficiency upgrades.
Energy Efficiency Revolving Loan Fund (EE RLF)

New Jersey-based commercial, institutional or industrial entities (including 501(c)(3) organizations) that have received an approved energy reduction plan under Pay for Performance may be eligible for supplemental financing through the EE RLF. The financing, in the form of low-interest loans, can be used to support up to 80% of total eligible project costs, not to exceed $2.5 million or 100% of total eligible project costs from all public state funding sources.