SHARED SOLAR OVERVIEW
REV helps real estate clients provide onsite generated solar power directly to residents and commercial tenants. This service, often called Multi-tenant Solar or Shared Solar, has many benefits:
- Increases Net Operating Income for owners
- Provides savings to tenants
- Provides clean energy to tenants
Shared Solar is made profitable through local policy and codes. Currently, California is the primary state for implementation. Other states, like Colorado, will quickly follow suit in the near-term.
HOW SHARED SOLAR WORKS
The process for offsetting tenant electric load results in revenue being redirected from the utility company to the owner and provides a return on investment for the owner. Here’s how the process works:
- REV performs onsite solar technical and financial feasibility analysis of the property
- If the analysis is positive and accepted by the owner, REV performs Project & Asset Management of the PV system, from concept to completion
- Owner acquires opt-in from tenants, then transfers all electric meters to the owner’s name
- Upon project completion and launch of the PV system, owner offsets the majority of tenant electric costs with onsite solar generation
- Using Virtual Grid software that links to the owner’s current billing system, owner charges tenants at a 5-10% discount compared to what they paid the utility company
INFORMATION FOR CALIFORNIA MULTI-TENANT PROPERTY OWNERS
Renewable energy incentives and mandates are here for California commercial property owners. See below for more:
- CPUC Code 2868: California Multi-Unit Solar Tenant Billing enables owners of multi-tenant properties to generate another stream of rental income. Onsite solar energy is substantially less expensive than residential electricity from the utility, so building owners can provide tenants with a ~10% discount on energy from the local utility rates while generating a new NOI.
- Title 24 California Solar Mandate: California’s New Construction Solar Mandate building code requires all newly constructed commercial and high-rise multifamily buildings to install Solar Photovoltaic (PV) technology and Battery Storage Systems.
- The required Solar PV and Battery System sizes are based on the conditioned floor area, climate zone, and building type. Then sized to meet up to 60% of the building’s electric load.
- This new Title 24 California Solar Mandate will apply to projects that submit for permits on or after January 1, 2023.
ABOUT VIRTUAL GRID SOFTWARE
Virtual Grid is a cutting-edge software that helps property owners manage and bill for solar panel systems in their properties, while also providing tenants with solar energy savings. With Virtual Grid, property owners can generate a new source of income, increase their NOI, and reduce their overall energy costs. The platform is user-friendly, easy to set up, and has a wide range of features that can help property owners:
- Track energy usage for each tenant and bill them accordingly
- Monitor and control energy consumption in real-time
- Provide tenants with detailed energy usage reports
- Ensure compliance with state and federal regulations
- Reduce overall energy costs
REV has been retained by some of the largest Real Estate Investment Trusts in the U.S. to implement Resident Solar projects. These projects indicate that it is possible to provide discounted green energy to Residents, offset Scope 3 emissions, comply with California Solar Mandates, and achieve returns accretive to the return of the real estate asset.