PJM Energy Credits
PJM Energy Credits
Incentives for Energy Efficiency

PJM Energy Efficiency Program - Simplified

Energy Efficiency Capacity Program rewards consumers who install energy efficiency equipment and/or systems; as a result, permanently reducing their average power demand across peak times of the year. Qualifying projects are elegible for up to four years of incentive payments, based on project commissioning date. Payments are earned based on the average load being permanently reduced during summer weekday afternoons. 

Types of Projects that qualify

Project Types

EES accepts lighting, variable speed drives (VSD / VFD), chiller, motors, industrial process improvements, data center new construction or renovations. Commercial new construction projects that exceed current state adopted ASHRAE efficiency standards, can also qualify. 

Measurement & Verification (M&V) Data will vary slightly for each project. Please complete a project specific questionnaire for further clarification and details.   

Applicable Time Periods

Applicable Time Periods

Projects are evaluated based on their average load reduction from 2:00 PM - 6:00 PM June - August for Annual and Base Capacity and additionally from 7:00 AM - 9:00 AM and 6:00 - 8:00 PM January - February excluding weekends and federal holidays. 

Submissions & Payments

Submissions and Payments

Customers are paid a portion of the capacity credit minus measurement and verification (M&V costs 60 days after the performance period ending September 30 and then quarterly thereafter for the duration of the resource's continued operation and eligibility period (2-4 years). 

Ongoing Use Verification

Ongoing Use Verification

The PJM Capacity Rewards program is an annual program where the resources are committed for 4 separate years. Due to this, the customer needs to verify with EES the continued operation of the committed resources for each delivery year.


Project Eligibility

Projects located in Ohio, West Virginia, Pennsylvania, New Jersey, and Delaware are generally eligible for the PJM Capacity Rewards Incentive, regardless of whether they have received incentives through State Grants, Loans or ACT 129 Utility Incentives. 

Utility operated ACT 129 energy incentive programs have the ability to claim the PJM Capacity Incentives in Illinois, Maryland, and Washington DC. If a customer applies for and receives incentives from the utilities within these states, these customers will not be eligible for additional incentives through the PJM Capacity Rewards Program.

Reach out to us for further follow-up as this matter can be confusing. 

Incentive Values

Compensation to customers

Customers receive a capacity payment based on the annual capacity value for their load zone and the amount of measured permanent demand reduced (KW) by the efficiency project.