LEED v4.1 Renewable Energy Credit: When to Substitute for v4 Projects
Written by Bhakti Dave, Building Performance Engineer at Zero Envy.
LEED has introduced an opportunity for projects pursuing certification under LEED v4 with the option to substitute the Renewable Energy Credit (REC) criteria from LEED v4.1. This change provides a streamlined pathway for projects to earn more points while advancing their sustainability goals. Here’s why this substitution matters and how your project can benefit from it.
What is Credit Substitution?
Essentially, LEED v4 credit substitution allows projects registered under the older LEED v4 to use updated credits from the newer LEED v4.1. This provides flexibility, enabling projects to benefit from improved and clarified requirements in v4.1 on a credit-by-credit basis.
In the case of this article, we are discussing substituting the LEED v4 Energy & Atmosphere credits, Renewable Energy Production and Green Power & Carbon Offsets for the new, combined LEED v4.1 credit, Renewable Energy.
Summary of LEED v4.1 Renewable Energy Credit
Under LEED v4.1, the Renewable Energy Credit (REC) framework has been revised to emphasize both on-site renewable energy generation and diverse off-site procurement strategies. This updated credit merges two credits from LEED v4 into a single framework, introducing new renewable categories and updated performance criteria. It encourages self-supply, supports new renewable development, and offers greater flexibility in selecting procurement strategies.
Whereas LEED v4 provided the same credit for all eligible renewable energy systems (on- or off-site, regardless of age), v4.1 requires projects to categorize each system as follows:
Tier 1: On-Site Renewable Energy – Includes new on-site renewable generation developed as part of the LEED project.
Tier 2: New Off-Site Renewable Energy – Includes off-site renewable electricity from assets built in the past five years or contracted to be operational within two years of occupancy.
Tier 3: Off-Site Renewable Energy – Includes off-site renewable energy projects that don’t meet the requirements of Tier 1 or Tier 2. Additional considerations may apply such as country/region, third party certification or others depending on the type of system.
Table. LEED BD+C (excl. CS) Points Earned for Renewable Energy and Offsets
When to Choose the LEED v4.1 Renewable Energy Credit Substitution?
Substituting the REC criteria from LEED v4.1 offers several benefits for LEED v4 projects, especially those with ambitious on-site renewable energy goals or diverse procurement strategies. The most obvious and applicable benefit of upgrading is the potential to earn an additional 2 LEED points for renewable energy systems. The new credit also provides additional avenues to earning top points based on different categories of renewables, making the credit more flexible overall.
Even though more points are available, every project is unique and substituting may not be the right move for every project.
When NOT to Choose the v4.1 Substitution
There are certain situations where it is less favorable to use the v4.1 credit in lieu of v4. The main situations are as follows:
Use v4 for off-site renewable energy systems that generate less than 40% of the energy use of the project. Since v4 provides no derating for off-site systems, points under the older rating system will be earned more easily for these systems. For larger systems, the additional points in v4.1 may be achievable.
Use v4 for on-site renewable energy systems that generate at least 1% of the energy use of the project, but less than 2%. These small systems would earn 1 point under v4 whereas the first point isn’t earned in v4.1 until achieving 2%.
Since v4 and v4.1 provide equal points for on-site (Tier 1) renewable energy systems generating at least 2% up to and not including 15% of the energy use of the project, it is recommended to stick with v4 to skip having to perform the substitution.
Project Example: University of the Pacific, Southwest Hall
The University of the Pacific’s Southwest Hall in Stockton, CA, is a new residential building combining historic design elements with modern methods and sustainability.
Project Highlights:
A three-story structure featuring suite-style accommodations, study lounges, and a 119 kW rooftop photovoltaic (PV) array.
All-electric design with air source heat pumps for space heating and cooling, energy recovery ventilators (ERVs) for ventilation, and centralized air source heat pumps for domestic water heating.
Building Consumption (pre-renewables): 46.4% site energy use improvement over the ASHRAE 90.1-2010 baseline.
Net Consumption (post-renewables): 57.7% improvement, with on-site renewables accounting for 21.2% of total energy use.
LEED Points Comparison
The comparison of LEED points between LEED v4 and the LEED v4.1 for the case study model is shown below.
By using LEED v4.1 credit substitution, this project earned two additional points for the on-site photovoltaic systems, demonstrating the value of this approach.
It is important to evaluate both frameworks for each unique project. For example, if this project’s renewable energy system were a new off-site PV system, it would still earn 3 points under v4, but only 2 points under v4.1’s Tier 2 category.
Simplifying the Process: LEED Report Card
To streamline energy performance calculations, Zero Envy has developed the LEED Report Card, a software tool that automates LEED energy reporting for those using IES Virtual Environment energy modeling software. The tool extracts relevant data from the energy model using the VE Python API and sends it to the cloud. This data is analyzed and presented to the user in all the available LEED metrics, recommending the path that leads to the most points earned. Projects outside of the US or those using custom energy or GHG emissions factors can provide these for use as well. They can also choose to evaluate renewable energy systems using a v4.1 credit substitution in addition to the usual v4 calculations.
To try out this tool for yourself, go to the BEM ToolBox website and create a free account. The LEED Report Card tool will be available to users early in 2025.
LEED Resources
For a deeper dive into all of these changes, refer to the LEED resources below:
LEED Credit Substitution Guidance (link)
Renewable Energy Calculator (link): Excel-based tool for evaluating renewable energy contributions
Have questions about your project or other comments about the article? Reach out to us at hello@zeroenvy.com.