ABSTRACT
Measurement and verification of savings (M&V) is an essential part of any effective energy management program. Without measurement, there is no way to tell if a person's procedures are effective, if the energy efficiency measures are delivering as predicted, or if new procedures are warranted. Financial institutions, which have learned effective due diligence for energy efficiency projects, look for quality M&V procedures. Climbing utility bills and growing concerns about air pollution have underscored the economic and environmental value of energy efficiency. Implementing an M&V protocol costs money. The more accuracy demanded; the greater the cost. However, M&V should never be allowed to become the major cost factor in a project. As a general “rule of thumb” M&V should rarely exceed 10% of the projected savings. Auditors, engineers and energy efficiency consultants should be prepared to offer guidance as these rules are applied.
