This report aims at formulating guidelines for designing a pay-for-performance (P4P) programme that steers towards energy efficiency measures in buildings benefiting both building owners and the power system. The guidelines are expected to facilitate the design of a conceptual P4P programme1 which may ultimately be piloted in one or more EU Member States. The methodological process to establish guidelines consisted of three steps: 1. Desktop research, consisting of theoretical reflections as well as assessment of examples of utility P4P programmes in the US. 2. Capturing expertise within the SENSEI consortium by means of virtual negotiations (‘negotiation games’). 3. Validating the acquired insights through consultations with external stakeholders. The research resulted in a recommended design process which is described in this deliverable.