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The energy cost offset from onsite renewable energy cannot be used to demonstrate compliance with the prerequisite. Can this cost offset still be credited to the proposed energy cost savings for this credit?

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NC-v4 EAc2:Optimize energy performance

Renewable Energy Credit Interaction with updated Mininum and Optimize Energy Performance

Hi all,

We’re working on the energy model for a project registered under LEED v4 with updated addenda, but following v4.1 requirements for Renewable Energy / RECs. I have a few questions regarding how different tiers of renewable energy impact both the Energy & Atmosphere prerequisites and credits, especially when mixing onsite and offsite renewable generation.

Scenario 1 – Tier 1 (Onsite Renewables):

  • Project has an annual site energy consumption of 500,000 kWh.

  • Tier 1 onsite system generates 100,000 kWh annually.

My understanding:

  • Minimum Energy Performance: Onsite renewables help meet the required 10% energy cost or source savings.

  • Optimize Energy Performance: Project earns 2 points (1 from Table 1 - Energy Cost/Source, and 1 from Table 2 - GHG Emissions).

  • Renewable Energy Credit: Project earns 5 points for 20% contribution via onsite renewables.

Scenario 2 – Tier 2 (Offsite Renewables):

  • Same 100,000 kWh renewable energy, but sourced offsite.

My understanding:

  • Minimum Energy Performance: Offsite renewables do not count for prerequisite compliance.

  • Optimize Energy Performance: Only counts toward Table 2 - GHG Emissions. Emission reduction is calculated by multiplying the expected annual renewable kWh by the regional CO₂ factor.

  • Renewable Energy Credit: Project earns 2 points.

So with this said, I have the following questions:

  1. Is my interpretation of how Tier 1 contributes to the prerequisite and credits accurate?

  2. Is my understanding of how Tier 2 contributes to each component also correct?

  3. Can Tier 2 (offsite) renewable energy come from a different EPA eGRID region than the project site? If so, how should the CO₂ factor be applied?

  4. For Tier 3 (RECs or utility green power), can it contribute at all to the Optimize Energy Performance credit (specifically Table 2 – GHG Emissions)? Or is it limited to the Renewable Energy Credit only?

  5. Can a project combine multiple renewable energy tiers (e.g., Tier 1 onsite + Tier 2 offsite + Tier 3 RECs) to maximize the number of points across the Energy Optimization and Renewable Energy credits? If so, are contributions from each tier prioritized or weighted?

Thanks in advance,

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Marcus Sheffer
LEED Fellow
7group / Energy Opportunities
LEEDuser Expert
4454 thumbs up

Thu, 07/03/2025 - 19:32

What version of LEED are you pursuing for minimum and optimize energy performance? You can pursue the rnewables under 4.1 and the other under 4.0. 1. For LEED v4 you must attain the minimum energy performance without renewables. For LEED 4.1 you do not have to do so. 2. Also depends on the version being pursued and whether the tier 2 meets the qualifications. 3. No 4. Tier 3 does not count toward minimum/optimize energy in any scenario. 5. You could combine Tier 1 and qualifying Tier 2. No weighting, just total production. 

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