Demand savings	Energy savings
Lighting measures	180 kW	350,000 kWh
Motor measures	30 kW	200,000 kWh
Total savings	210 kW	550,000 kWh

210 kW x 0.65 = 136.5 kW

2. Compares this value with the amount of demand savings being claimed for the lighting measures. Since the maximum value (136.5 kW) is less than the claimed value (180 kW), the Project Sponsor uses the maximum value when calculating the total demand savings portion of the project's incentive payment, as shown in the following equation:

$175 x (136.5 kW + 30 kW) = $29,137.50

To calculate the incentive for the same project's energy savings, the Project Sponsor uses a similar approach:

1. Calculate the maximum amount of energy savings allowed from lighting measures as follows:

550,000 kWh x 0.65 = 357,500 kWh

2. Compare the resulting value with the amount of energy savings being claimed for lighting measures. In this case, the maximum allowed (357,500 kWh) is more than the claimed savings (350,000 kWh), so the latter value is used to calculate the total energy savings portion of the project's incentive payment:

$0.060 x (357,500 kWh + 200,000 kWh) = $34,450

The total project incentive is therefore calculated as follows:

$29,137.50 + $34,450 = $62,587.50