How Residential Renovations and Additions Incentives are Calculated

Incentive eligibility depends on whether the home meets minimum energy savings requirements, as determined through energy modeling. Pay for Savings incentives are determined by the amount of electric savings and overall performance of the home compared to the program baseline.

• 1 Pre-construction home. During an initial site visit, we calculate how much energy your home currently uses.
• 2 Baseline home. Using advanced software, we calculate energy savings for both the renovated portion of the home and the new addition.
• 3 Post-construction home. We calculate how much energy your updated home uses.

If your renovation and/or addition incorporates energy efficiency upgrades, you may qualify for incentives.

How Pay-for-Savings incentives are calculated:

• To calculate incentives, your HERS rater will create a whole-house, energy-use model of your home and compare it against a model of an average Massachusetts home (i.e. the program baseline).
• To qualify for incentives, your home must have a minimum of 5% savings above baseline per unit.
• We enter electric savings, fuel savings, and the total savings percentage into the following formula to determine your incentive:

  Renovations & Additions Calculation table

  Single-family incentive calculation		Multi-family incentive calculation
  A	Electric Savings x $0.50/kWh	A	Electric Savings x $0.50/kWh
  B	Fuel Savings x $50/MMBtu	B	Fuel Savings x $50/MMbtu
  C	Savings Percentage x $4,000	C	Savings Percentage x $2,500
  Total participant Incentive	A + B + C	Total participant Incentive	A + B + C
  HERS raters receive $1,000 per single-family project in the Base tier, $1,250 per unit in the Level 1 tier, and $1,500 per unit in the Level 2 tier.		HERS raters receive $200 per multi-family unit in the Base tier

• An incentive cap of $10,000 per unit in the Pay-for-Savings incentive is applied. This does not include Market Transformation adders.
• Single-family and multi-family designations are as follows:
  • We define single-family homes as a single-family detached house or each unit in a standalone building with 2 to 4 units.
  • Developments that consist of multiple single-family detached homes qualify as single-family units.
  • Buildings with 5 or more units qualify as multi-family units.
• Master-metered buildings are not eligible for multi-family, three stories or less, incentives. However, they may be eligible for multi-family, four stories or more, incentives. Our technical team will evaluate master-metered buildings to determine eligibility. Please contact multifhr@icf.com with any questions.