Pay for Performance

The Pay for Performance (P4P) program was launched by New Jersey in 2009 as a way to provide buildings with large incentives to become more energy efficient from a holistic standpoint. This means addressing multiple buildings systems, including lighting, heating, cooling, ventilation, building envelope, and others. Incentives for any given building often range from $100k to up to $2M depending on how much energy is saved, and are paid at 3 stages during the project: Plan Approval, Installation Completion, and Savings Verification. Both new buildings larger than 50,000 square feet, as well as existing buildings with a peak electrical demand above 200kW (as shown on utility bills) are eligible for the P4P incentives.

Existing Buildings

Some of the largest and most lucrative incentives available for existing buildings in New Jersey come from the Pay for Performance program. P4P-EB provides incentives covering up to 50% of the costs to increase the energy efficiency of a building. The incentives also help offset the engineering and energy modeling costs required to participate in the program and identify the most cost effective means of reducing energy consumption and increasing sustainability.

The engineers at Navigreen have completed energy models at over 30 existing buildings in New Jersey which allowed for their participation in the P4P program, leading to over $6.5M of P4P incentives paid. Our team specializes in optimizing building design to minimize carbon footprints, and maximize incentives.

New Construction

For new buildings that have yet to be designed and/or constructed, or for buildings undergoing extensive rehabilitation or that have been vacant, incentives are based on how efficient they are made to be when compared to the current New Jersey energy code. Unlike Existing Buildings, P4P Partners will model the new building as it is designed, then again as it would be designed to meet minimum code-required efficiency standards. This process can help owners identify cost effective design improvements that can reduce future energy use, increase sustainability, and maximize incentives obtained from the program.

The Navigreen team has extensive experience obtaining incentives for new buildings through the P4P program, and on average has helped each owner qualify for over $1M per building. We are always eager to dive into a project to help maximize incentives and drive deep energy savings.