How it works
(estimation + performance = payment)
Most utility programs provide a fixed rebate based on estimated savings. Market Access pays for grid value delivered AND payments are not capped at project cost (this is not a rebate)!
Once you know that a customer site is eligible for FLEXmarket projects and you have your preliminary scope of work, you will want to estimate the value that you will earn for implementing a project at the site.
To accomplish this, you'll need a few inputs including, can use the Project Value Estimator (PVE) tool (only available to FLEXmarket aggregators - not a part of our network? No problem, create a profile and get started).
The PVE tool varies by market, so you will want to navigate to the market specific page from the top menu. On the right hand side of the market specific page, under the prospecting tab, you will find the link to the PVE tool.
Aggregator payments are based on measured performance, and the load shape is used to arrive at an hourly kWh value that is then paired with the hourly avoided cost curve to help forecast project value.
Measured savings can and will deviate from the deemed load shape.
Example: Insulating an attic will reduce heating and cooling load, so its resource curve will be a reduction in energy usage that varies based on the times the HVAC system is running.
Project Payment Parameters include:
Program Admin Costs
A portion of project value is allocated towards general program oversight with two components:
Attainable Value Cap
Actual site savings adjusted by population comparison group.
The Recurve Platform tracks the savings of every aggregators projects monthly both at a site, then for payment at the portfolio. Aggregators can track their projects savings in their instance of the Recurve Fleet Manager and valued via Flex Ledger. All Calculations are open-source with market rules guided by the CPUC Normalized Metered Energy Consumption CPUC rulebook.
Aggregators are paid for the measured grid value at the meter, so projects that maximize summer peak reductions will be the most valuable.
Payments will be made at fixed quarterly intervals established in the program rules and are based on each aggregator’s project portfolio that is “active for payment”. Projects become “active for payment” after the value generated exceeds participant costs (as applicable) and marketplace management costs for the project associated with the forecasted savings. Payments are paid in full at the end of the first full year in operation.
In addition, 10% of measured project value will be withheld each quarter to provide a safety factor in regards to seasonality. As projects complete the full 12 month measurement period, aggregators will be compensated with a “true-up” payment in the following quarterly payment cycle that will release owed funds. A visualization of payment cadences is shown in the figure below.
Project Value Estimation
Project value estimation is key to aggregator success in the FLEXmarket program. If a project is overvalued/underperforms, the Program Admin Costs will represent a higher proportion of the Realized Project Value. A project can produce the same Realized Project Value, but depending on the Estimated Project Value, Aggregator Payment can vary. Remember, estimate the value of your projects as accurately as possible.
The least-complicated project enrollment process you'll find. To enroll a project, submissions will need to include some fairly basic information about you (the aggregator), the customer, and the project. Below is a list of the minimum requirements for the Project Enrollment Process.Aggregator Information
- Company Name
- Primary Contact Name, Email, and Phone Number
- Customer Name, Email, and Phone Number
- Customer Street Address, City, State, and Zip Code
- Unique Identifier for the Utility Meter for both Electric and Gas (this is typically the Service Agreement ID (SAID))
- Annual Predicted Savings for both Electric and Gas
- Project Costs broken out by Electric and Gas interventions
- Total Project Cost (Total cost of a project without customer incentives deducted)
- Total Customer Cost (out of pocket costs for a customer i.e. customer incentives deducted)
- Project Start and Completion Dates
- Primary Measure Type
- Secondary Measure Type (if applicable)
- Customer Data Authorization Form
- Scope of Work
- Final Invoice
- Photos of Installed Measures (Upon Completion Only)