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Guidance on Including 5% Market Effects (ME) in Submissions

There has been ongoing confusion regarding the calculation of net savings in claim data inputs and monthly report submissions. Specifically, some users have incorrectly assumed that the 5% market effect (ME) adder should be applied within claim data inputs, leading to discrepancies between claims and monthly report savings figures.

Written By cedars team

Last updated Over 1 year ago

Key Clarifications

  • CEDARS automatically applies a 5% market effect adder to claims uploads. Therefore, the data inputs for claims should not include the 5% market effect adder to prevent double counting.

  • The net savings reported in monthly reports must include the 5% market effect adder. This ensures alignment with CET-calculated savings used for end-of-year data quality checks.

  • Market effects is always 0 for Budget Filing.

  • The CET output file includes the 5% market effect adder

Applying 5% Market Effects in Monthly Reports

  • Add the 5% market effect adder to net savings after applying the net-to-gross ratio (NTGR).

  • Example:

    • Gross savings: 100 kWh

    • NTGR: 0.90 → Net savings: 90 kWh (100 kWh * 0.90)

    • Final net savings with ME: 95 kWh (90 kWh * 1.05)

Common Mistakes to Avoid

  • Do not add the 5% market effect adder to the claim table total savings. Fields like Claim.TotalFirstYearNetkW these already follow CEDARS savings equations, which apply NTGR directly without market effect.

  • Ensure monthly report net savings include the 5% market effect adder to align with CET calculations for end-of-year checks.

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