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As data granularity and analytics have improved, energy and facility professionals are shifting to a faster, more precise method of performing Measurement and Verification (M&V). The industry is moving from traditional methods to an automated approach.
M&V 1.0 uses periodic, manual analysis of utility data to verify savings after a project, while M&V 2.0 uses automated, high-frequency data and real-time analytics to track and verify savings continuously.
The Credit Card vs. Banking App Analogy
The easiest way to understand the difference is through a simple financial analogy:
M&V 1.0 is like getting your credit card bill once a month to see what you spent. It is accurate, but it is a lagging indicator.
M&V 2.0 is like checking your banking app in real-time to see every transaction as it happens.
Traditional M&V vs. Automated M&V: A Side-by-Side Comparison
As M&V workloads have increased for ESCOs, utilities, and M&V professionals, shifting to an M&V 2.0 approach is vital to save time and improve accuracy in the savings analysis.
The table below breaks down the differences in how data is sourced, the time spent, and the cost and effort required.
Features
Traditional M&V
Automated M&V
Data Source
Utility Bills
Manual Meter Readings
Utility Bills
Smart Meters
API Integration
Analysis Speed
Manual Analysis; Monthly or Annually
Automated, Continuous Analysis and Reporting
Technology
Spreadsheets
Cloud-Based Platform
Adjustments for Variables and Non-Routine Adjustments
Manual Adjustments
Automated, Continuous Adjustments
Insights
After-The-Fact Savings Verification
Ongoing Performance Tracking and Persistence Monitoring
Cost & Effort
Lower Tech Cost, High Labor Effort
Equitable Tech Cost, Low Labor Effort
Why Upgrade to M&V 2.0?
Ultimately, M&V 2.0 improves the accuracy of energy savings while saving time and reducing the manual effort required in traditional M&V analysis. By automating routine and non-routine adjustments, M&V 2.0 allows for quicker reconciliation, deeper persistence monitoring, and improved trust in your calculated energy savings.