> ## Documentation Index
> Fetch the complete documentation index at: https://documentation.kodelabs.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Calculations and parameters

> Reference for EnerG target methods, weather normalization settings, distribution curves, accruals, and model accuracy thresholds

Look up the calculation methods and parameters that drive EnerG targets, baselines, budgets, and models. For concepts, see [Baselines and weather normalization](/products/energ/concepts/baselines-and-weather-normalization) and [Budgets and capital planning](/products/energ/concepts/budgets-and-capital-planning).

<h2 id="target-methods">
  Target calculation methods
</h2>

Targets set a reduction goal against a baseline. EnerG offers three reduction paths.

| Method            | How the goal applies                              |
| ----------------- | ------------------------------------------------- |
| Annual            | A fixed reduction each year                       |
| Compounding       | A percent reduction that compounds year over year |
| Custom milestones | Specific reduction values at chosen years         |

Set targets on [Portfolio targets](/products/energ/analytics/portfolio-targets).

<h2 id="weather-normalization">
  Weather normalization
</h2>

Weather normalization trains regression models that adjust usage for heating and cooling conditions. Configure these settings on [Baseline analysis configurations](/products/energ/analytics/baseline-portfolio-configurations).

| Setting                            | Purpose                                                                       |
| ---------------------------------- | ----------------------------------------------------------------------------- |
| Building Base Temperature          | Pull heating and cooling bases from building information or set custom values |
| Temperature Unit                   | Celsius or Fahrenheit for base temperatures                                   |
| Cooling / Heating Base Temperature | Degree-day reference temperatures, often near 65 °F                           |
| Weather averages                   | Lookback window for normal weather, such as 10 years                          |
| R-Squared Tolerance                | Minimum model fit required to mark training successful                        |

<h2 id="distribution-curves">
  Distribution curves
</h2>

Distribution curves spread a measure's annual savings across months. EnerG provides defaults derived from degree-day logic, or you build a custom curve whose monthly factors sum to 1.000.

| Curve         | When to use it                                      |
| ------------- | --------------------------------------------------- |
| Cooling (CDD) | Summer-weighted savings tied to cooling degree days |
| Heating (HDD) | Winter-weighted savings tied to heating degree days |
| Flat (1/12)   | Even monthly allocation, such as lighting           |

Assign curves on [Capital planning](/products/energ/sustainability/capital-planning#distribution-curves).

<h2 id="accruals">
  Accruals
</h2>

Accruals estimate cost for months without final bills.

| Behavior   | Detail                                                      |
| ---------- | ----------------------------------------------------------- |
| Source     | Prior-year shapes, calendarized to the current period       |
| Lifecycle  | Placeholder until a provider bill posts, then trued up      |
| Toggle     | On for month-end reporting; off for billed-only audit views |
| Row marker | Rows show Data Origin of System Accrual until replaced      |

<h2 id="model-accuracy">
  Model accuracy thresholds
</h2>

M\&V and forecast models report fit with three metrics. A model below your thresholds flags as not acceptable.

| Metric    | What it measures             | Lower is better       |
| --------- | ---------------------------- | --------------------- |
| R-squared | Share of variation explained | No (higher is better) |
| CV-RMSE   | Scatter around actuals       | Yes                   |
| MAPE      | Average percent error        | Yes                   |

Set the threshold in the model wizard, or let EnerG use MAPE as the default. See [Energy modeling and M\&V](/products/energ/concepts/energy-modeling).

<h2 id="baseline-qualification">
  Baseline qualification
</h2>

| Rule            | Requirement                                                |
| --------------- | ---------------------------------------------------------- |
| Minimum length  | 12 consecutive months of complete billed data per category |
| Optional length | 24 months, which averages duplicate calendar months        |
| Disqualifier    | Partial months or missing commodities inside the window    |

## Next steps

<CardGroup cols={2}>
  <Card title="Baselines and weather" icon="chart-line" href="/products/energ/concepts/baselines-and-weather-normalization" arrow={true} cta="Read">
    Understand the reasoning behind these parameters.
  </Card>

  <Card title="Create baseline configurations" icon="settings-2" href="/products/energ/analytics/baseline-portfolio-configurations" arrow={true} cta="Open">
    Apply weather normalization settings across buildings.
  </Card>

  <Card title="Capital planning" icon="landmark" href="/products/energ/sustainability/capital-planning" arrow={true} cta="Open">
    Assign distribution curves to conservation measures.
  </Card>

  <Card title="Portfolio targets" icon="target" href="/products/energ/analytics/portfolio-targets" arrow={true} cta="Open">
    Set reduction goals with these calculation methods.
  </Card>
</CardGroup>