Imagine having to make the tough decision to not turn the heat on when it’s cold or not use the air conditioning when it’s over 100 degrees. That is the dire position that California’s high electricity rates have put many low-income groups in. The US Bureau of Labor Statistics found that southern California is home to some of the highest electricity rates in the country. San Diegans fare the worst with an average of 40.9 cents per kWh, even more than energy rates in Hawaii. Los Angeles and Riverside County rates weren’t too far behind at 25.2 cents per kWh. While we can’t stop utilities from raising their rates, Ivy does have a solution. Read on for more.
Highest Electric Rates in the US
When you hear that California has the highest electric rates in the US, how bad is it really? California utility customers pay an average of 66% more for electricity than the rest of the nation, with some areas being even higher. For example, PG&E customers pay 80% more than the national average. The rates haven’t been a slow climb allowing people to adjust either. Those PG&E customers had their rates increase by 8% in January and, a mere two months later, were hit with another 8.9% increase.
California Energy: Expensive but Reliable?
If you pay more for almost any consumer good, it is natural to expect better performance, quality, and reliability. However, that’s not the case with California energy rates. Unfortunately, state officials report that the grid power supply may shortfall demand this year by 1,700 to 5,000 megawatts, depending on various factors.
Why are California Energy Rates So High?
Many circumstances impact energy rates. State regulations and policies, wildfires, harsh weather conditions, fuel costs, and energy generation costs are just a few. This is a point of contention between public utilities and their customers, as their shareholders take home a profit while customers carry the weight of grid development. For example, an SDG&E spokesperson shared that the company had to spend $3 billion since the 2007 wildfires to replace wood poles, underground wires, and rebuild their system. The utility companies face additional pressure from state legislation, including an increase in electricity demand due to natural gas restrictions. Additionally, the utilities point to state-mandated public purpose programs that are added to electric rates as a cause of the high prices. SDG&E’s Senior VP of Customer Services and External Affairs, Scott Crider, shared that removing the $350 million in state-mandated annual costs would reduce the system average rate by 6%, saving SDG&E customers about $90 per year. While customers blame utilities and utilities point to the state, neither action will help lower rates.
How are Energy Rates Affecting Low-Income Groups?
When energy rates go up, higher-income groups can afford to install solar and typically own their home and can make that decision. Low-income groups either own their home and can’t afford solar or rent their home and can’t make that decision. Furthermore, low-income households already devote a larger proportion of their monthly income to electricity. So, energy rate increases mean they have less available income for groceries or other necessities. This is also part of the reason that California also has the highest poverty rate in the country.
What is the solution to California’s Energy Rate Hikes?
It is completely unnecessary and unfair for low-income groups to be put in this position of choosing between comfort at home and putting that utility bill money toward other necessities. While there are some state programs to help low-income homeowners go solar, there haven’t been many options for low-income groups in multifamily housing. Now, Ivy has a solution for this demographic if their building owners are willing to adopt solar. Ivy’s Virtual Grid solar billing software equitably distributes the benefits and savings from multifamily solar between building owners and residents. Not only does multifamily solar take some of the burden off of low-income households, but it also helps the apartment owner save on the community electricity bill.
Lock in Your Energy Rates with Ivy’s Virtual Grid
It’s hard to say how far these energy rate hikes will go and if they will ever stop. Currently, a chart from the CPUC (California Public Utilities Commission) forecasts SDG&E’s energy rate increases to exceed the rate of inflation by nearly 70% by 2030. While many people will be at the whim of utility company rate decisions, everyone with Virtual Grid by Ivy will be locked into their current rates for 25 years! So, Ivy makes it easier for multifamily owners to distribute shared solar to their residents, it lowers current utility bills with solar savings, and it protects you from the ever-increasing electric bill for 25 years. There are several additional benefits for apartment owners and residents alike, but the biggest one is finally giving equity to people who have been left behind for years. Talk to Ivy about how to help reduce your residents’ energy costs or for information on how to encourage your building owner to go solar. Learn More
Pioneering the Future of Multi-Tenant Solar Energy Management
2024 was a trailblazing year for Ivy Energy, where we shattered barriers, redefined possibilities, and delivered innovative solutions to address the multi-tenant solar split incentive challenge. By driving product advancements, forging impactful partnerships, and scaling operational processes, we empowered multi-tenant properties to embrace clean energy with confidence.
A Year of Growth and Market Expansion
Ivy has grown its active project pipeline 450% compared to 2023, with a line of sight to clear +600% in active projects by the end of the year. Our tech-enabled solutions empower more communities than ever. With $18M in Series A funding (Read more) and the strategic acquisition of Glow Energy (Read more), we are poised for unprecedented growth and impact. This investment enables us to enhance our technology, streamline operations, and expand our reach into new markets nationwide.
Entering new markets with increased resources allows us to address diverse energy challenges and deliver tailored solutions to property owners and tenants. Additionally, the launch of our consulting arm provides expert guidance for our clients and partners to save money and enhance ROI while navigating intricate solar investments.
Meaningful Operational Updates
At Ivy, innovation isn’t just about technology—it’s about creating digital tools that empower our clients and their tenants:
- PropTech Integrations: Partnered with RealPage, Entrata, and Yardi to automate rent roll syncing, move-in/move-out updates, and direct charge posting to resident ledgers. These integrations reduce monthly processing time by up to 2 hours per property while enhancing data accuracy and operational efficiency.
- NEM Credit Delay Optimization: The Utility Coordination team adopted the CPUC informal complaint process to reduce delays in NEM activation after PV solar system commissioning. This improvement cut the average resolution time for delayed NEM credits from 123 days in 2023 to 49 days in 2024, allowing property owners to see Net Operating Income over two months sooner on average.
Platform Advancements that Lead the Industry
Our engineering team broke new ground, ensuring our platform stays ahead of the curve:
- Migrated to a new infrastructure processing system for faster processing and further automation improvements across operational features.
- Introduced IvyDual in response to regulatory requirements in California, which allows us to enter new markets where consolidated billing is not viable.
- Achieved SOC 2 Compliance, reaffirming our commitment to data security. (Read more)
- Built initial public API for Conservice integration and new utility data access pathways, strengthening our platform’s versatility and reliability.
Empowering Positive Experiences with CX
At Ivy Energy, our customers rely on us as true partners in their clean energy journey, helping them achieve long-term NOI growth while providing exceptional support for property owners and tenants. We consistently deliver this experience by simplifying complex utility processes and offering our white-glove service that ensures our clients feel supported, informed, and empowered to succeed. This year, Ivy’s Customer Experience Team launched two significant platforms:
- Ivy Implementation Portal: A step-by-step, transparent portal that simplifies solar implementation for our clients and partners across multiple organizations. (Watch a walkthrough of the new portal here.)
- Resident Help Center: Educate tenants about the solar program with helpful resources and offer direct support online or by phone. (Explore the Help Center)
Shaping the Future Through Thought Leadership
In 2024, Ivy Energy reinforced its position as an industry leader; our Virtual Grid 3.0 impressed the judges and earned first place in Solar Power World’s “Best in Show” award for large-scale solar innovation. (Read more)
Leadership team members Alex Dogan, Tanya Kuhn, and Sean Nam were celebrated in San Diego Business Journal’s Leaders of Influence in Technology 2024 for their contributions to advancing sustainable energy. (Read more) Ivy was also featured in Alt Energy Magazine (Read more), San Diego Business Journal (Read more), and on Solar Academy. (Read more)
Logan Carter showcased Ivy’s groundbreaking innovations in a main stage speech at Cretech NY (Watch here), an engaging appearance on the IMN Podcast (Listen here), and a deep-dive interview with Chris Moreno, also known as “Mr. PropTech.” (Watch here) Ivy’s policy team further expanded its influence by authoring a Model VNEM Whitepaper, a critical guide to enabling multi-tenant solar models nationwide. (Read the Whitepaper).
Measurable Environmental Impact
This year, Ivy Energy amplified its environmental contributions, with contracted units in implementation set to offset an astounding 109 million pounds of CO2. Meanwhile, active units have already offset 9 million pounds of CO2, demonstrating our ongoing dedication to reducing carbon emissions.
Looking Ahead to 2025
As we celebrate 2024’s successes, we are always looking to the future. In 2025, we’ll continue to push boundaries, deliver innovations that empower our clients, improve tenant experiences, and lead the multi-tenant housing sector toward a sustainable future.
A Message from Dover Janis, CEO of Ivy Energy
“2024 was a year of progress and adaptation. While utility-caused delays challenged our growing pipeline, our focus on agile problem-solving reduced their impact and kept the market moving forward. This is a testament not only to the dedication and focus of our team but also to the strong macro-level foundation that the onsite energy business model provides for real estate owners, even in the face of monopoly-driven resistance. With a large and expanding customer base and hundreds of projects, we have continued to validate the transformative potential of clean energy solutions for shared communities. I’m incredibly proud of our team—now among the most mature, knowledgeable, and experienced in the industry—as we trail blaze the path forward. The market is primed to grow and drive transformative change in local communities. I’m deeply grateful to our partners and customers, whom we have the privilege of serving every day as we continue to lead the way.”
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