Pay for Performance - New Construction
Download program applications and incentive forms.
Design and Build a More Energy Efficient Building
Take a comprehensive, whole-building approach to saving energy in your planned buildings and earn incentives that are directly linked to your savings. Pay for
Performance relies on a network of Program Partners who provide technical services under direct contract to you. Acting as your energy expert, your Partner will develop an Energy Reduction Plan for each project by developing a simulated computer model of your planned building and helping design it to perform 15% better than a minimally code-compliant building.
Eligibility
Commercial, industrial and institutional buildings with 50,000 square feet or more of planned conditioned space are eligible to participate including hotels and casinos, large office buildings, multi-family buildings, supermarkets, manufacturing facilities, schools, shopping malls and restaurants. Existing buildings undergoing substantial renovations may also be eligible to participate if the project involves:
- Change of use and reconstruction of space within;
- Construction work that requires the building to be out of service for 30 days or more; OR
- Reconstruction of a vacant structure
Generally, a project must be located in a Smart Growth area to participate. This link will direct you to the HMFA locator where you can determine if your project is located in a Smart Growth area.
Your Energy Reduction Plan must define a comprehensive package of measures capable of achieving energy costs 15% below ASHRAE 90.1-2004 Standards.
Combined Heat & Power (CHP) projects are eligible for incentives up to $1,000,000 as part of Pay for Performance. Download the CHP Application Package that includes instructions, forms and technical worksheets.
Incentives
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.
A detailed Incentive Structure document is available.
Steps to Participation
Click here for a step-by-step description of the program.




