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NC-v4 EAp2:Minimum energy performance

Power Purchase Agreement (PPA) applicability

Dear Sirs and Madams,

I have a question considering power purchase agreements regarding of LEED certification.

In the context of LEED v4 New Construction—particularly regarding EAp2 (Minimum Energy Performance) and potentially EAc1 (Optimize Energy Performance)—can power purchase agreements (PPAs) be leveraged as a viable strategy? If so, what specific documentation or verification would be required to demonstrate compliance? Furthermore, do PPAs influence the energy cost or energy use intensity indicators used in LEED scoring, and how might they impact overall project certification outcomes?

If so, what specific documentation, contracts, or verification procedures are required to demonstrate compliance and substantiate the claimed benefits in the energy model?

Additionally, do PPAs have any direct influence on the metrics used for LEED scoring, such as the energy cost savings percentage or Energy Use Intensity (EUI), and how might entering into such agreements affect the overall project certification outcomes?

I would be grateful for help in clarifying the topic.

 

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

Wed, 07/16/2025 - 15:21

The short answer is yes but it depends on the nature of the PPA. Solar gardens and community systems are eligible for credit, as long as the project will own or lease the system for at least ten years and it’s located in the same utility area. You would need to provide a copy of the agreement.In a v4.0 the project must meet the prerequisite without any renewable energy contribution. Renewable energy can sometimes be used to contribute to the points earned under optimize energy performance. Regarding energy costs there is specific guidance in the LEED Reference Guide but simply put you need to use the same rates in both models and the renewable savings is subtracted from the proposed modeling results. The overall effect on the certification outcome is entirely dependent upon the details.

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