2711MV Method Selection

Measurement and verification (M&V) has a dual role. First, M&V quantifies the savings being obtained. This applies to the initial savings and the long-term savings. Since the persistence of savings has been shown to decrease with time,1 long term M&V provides data to make these savings sustainable. Second, M&V must be cost effective so that the cost of measurement and the analysis does not consume the savings.2'3 The 1997 International Performance Measurement and Verification Protocol (IPMVP) set the target costs for M&V to be in the range of 1% to 10%, depending upon the Option selected, of the construction cost for the life of the ECM. Most approaches fall in the recommended range of 3% to 10% of the construction cost. The IPVMP 2001 removed this guidance on the recommended costs for M&V. Currently, a goal of about 5% of the savings per year has evolved as a preferred criterion for costing M&V, since the cost justification directly results from the calculation.

A general procedure for selecting an approach can be summarized by the following five steps:

a) In general one wants to try to... Perform Monthly Utility Bill Before/After Analysis.

b) And if this does not work, then... Perform Daily or Hourly Before/After Analysis.

c) And if this does not work, then... Perform Component Isolation Analysis.

d) And if this does not work, then... Perform Calibrated Simulation Analysis.

e) Then... Report savings and Finish Analysis.

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