Energy efficiency continues to be a major focus for commercial property owners seeking ways to control operating costs and meet sustainability goals. Avista’s Pay for Performance program offers a unique opportunity for businesses to benefit from measurable, long-term energy savings through a structured incentive model. Rather than rewarding individual upgrades, this program emphasizes whole building energy savings, creating an integrated and strategic approach to energy management.

What Is the Pay for Performance Program?

The Pay for Performance program is an incentive-based initiative that provides rebates to Avista commercial customers for actual energy savings verified at the meter. It covers a broad range of energy-saving activities, including building retrofits, equipment upgrades, operational improvements, behavioral changes, and retro-commissioning.

Unlike traditional programs that provide rebates for specific pieces of equipment, the Pay for Performance model rewards overall energy reduction across an entire facility. Customers receive annual payments over a three-year period based on the actual verified savings achieved. Incentives are paid at a rate of $0.08 per kWh for electricity savings and $1.25 per therm for natural gas savings.

To participate, customers must demonstrate that their planned improvements will achieve at least a 10% reduction compared to their baseline energy usage. Eligible participants include Avista’s commercial customers with conditioned spaces and stable, measurable energy usage patterns. Facilities must be separately metered, and interval meters are preferred for accurate tracking.

The program process follows these steps:

1. Submit a completed application form identifying savings opportunities.
2. Avista reviews the project and establishes a baseline for energy usage.
3. Upon approval, the customer signs a Pay for Performance agreement.
4. The customer completes the commercial upgrades within one year.
5. Energy savings are measured annually, with incentive payments issued after each performance year.

How This Benefits Businesses

Participating in the Pay for Performance program offers numerous benefits for businesses looking to enhance operational efficiency and financial health.

First, it transforms energy conservation into a revenue-generating activity. By focusing on whole building energy savings, businesses can maximize their rebates by combining multiple efficiency measures—whether they involve HVAC system upgrades, lighting improvements, or improved operational practices. The more comprehensive the improvements, the higher the annual payouts.

Second, businesses gain flexibility in choosing how to achieve their savings goals. Instead of being restricted to a list of eligible equipment, companies can craft customized strategies that best meet their facility’s needs. This could include investments in high-efficiency heating and cooling systems, better lighting controls, or advanced energy management systems.

Third, the program encourages a long-term approach to energy management. Payments spread over three years incentivize businesses to not only implement changes but also maintain and improve energy efficiency practices over time. The ongoing monitoring helps ensure that the improvements deliver lasting savings, not just one-time results.

Finally, participating in the Pay for Performance program supports broader business objectives, including sustainability commitments and regulatory compliance. Demonstrating proactive energy management can strengthen a company’s reputation among clients, tenants, investors, and regulatory bodies.

Conclusion

Avista’s Pay for Performance program offers an innovative path for businesses to turn energy efficiency into financial opportunity. By focusing on verified whole building energy savings and rewarding continuous improvement, the program aligns environmental responsibility with smart business practices. Companies undertaking commercial upgrades can not only lower their utility bills but also earn meaningful incentives through the pay per performance rebate, ensuring a win-win outcome for their operations and the environment.

Click here to read the full description of the program, originally published by Avista.