The buildings best positioned to meet this credit are those whose utility or service provider has a demand reduction program in place, and that have large systems that can be turned off during a demand response event.

Buildings located in markets with an existing demand response program are also the ones that will be most likely to benefit financially from pursuing this type of strategy, due to the high cost of electricity in these markets. Also, providers typically provide financial incentives beyond any reduction in peak demand charges to encourage buildings to participate.

However, keep in mind that even when an existing demand response program is available, the LEED requirement to reduce demand by 10% during a response event could be a barrier to your project meeting the credit.

Other buildings that may be a good fit for the credit are those that have existing load-shifting strategies in place, such as hot or chilled water storage.

If your building doesn’t fit into one of the scenarios above, this credit probably won’t be feasible.

What’s New in LEED v4

• This is a new credit.

Readiness Review Questions

• Is your building already enrolled in a demand response (DR) program? If so, does the contract cover at least 10% of the annual peak demand? If not, can the current commitment be amended?
• Do you have a written plan for meeting the commitment in the DR contract?
• If DR programs are not available to your building, can you still demonstrate that you have the infrastructure in place to use a future DR program?
• Can you reduce peak demand through load shifting?