Concurrent Baseline Impact for Solar VEECs: New Methodology

There have been significant updates for commercial and large-scale projects eligible to generate VEECs under the Victorian Energy Upgrades program. Here we are going to outline the changes and their impact on your large energy project.

Note: this blog is detailed and technical, focuses on questions we hear from clients, and is relevant for commercial and industrial sized jobs. If you aren’t already familiar with VEECs, we recommend reading our introduction to Solar VEECs post here. And if you encounter any acronyms that aren’t familiar just refer to our Glossary.

To claim VEECs for an energy efficiency upgrade under the Project Based Assessment (PBA) method using Measurement and Verification (M&V), a 12 month Baseline period and a 12 month Reporting period are required. In the past, this has been structured as a Baseline drawn from before the changes and Reporting being a 12 month period after the upgrade (be it solar PV, HVAC, machinery upgrades or otherwise). 

A recent policy update has allowed a new methodology – the concurrent Baseline and Reporting period method. To use this method the system must satisfy the ‘On-Off Test method’ where it can be turned on and off easily, and can be readily removed and reinstated without affecting the facility operation. Currently the only VEEC eligible upgrade that satisfies this test is solar PV. 

By opting to use the concurrent baseline and reporting method we mitigate common concerns for Solar VEEC sites: 

• There is no compliance related penalty for changes in site energy consumption or production within the M&V period. This encompasses site upgrades, and standard changes in operation and production. The site must be able to prove that the changes were not temporary 12 month changes that inflated the baseline, but were long-term and required changes. 
• Operations that have been functional for longer than 12 months and have recently moved premises are now eligible for the scheme. 
• Baselines that were previously corrupted due to machinery upgrades, staged solar system installations and changes in operation are now not a concern, as the baseline is drawn in conjunction with the reporting period. 

For any questions and enquiries please contact our M&V VEEC specialty team via customer.service@ecovantage.com.au