Ivy Energy is at the forefront of the clean energy transformation for multi-tenant real estate, offering a comprehensive suite of technology-enabled solar billing services. Ivy partners with property owners seeking to comply with New York City's Local Law 97 (LL97) to help them reduce their building’s emissions by 40% by 2030 and 80% by 2050. Incorporating distributed energy resources will play a key role in helping property owners decarbonize their buildings and comply with LL97. Understanding the limits of offsite community solar and Renewable Energy Credit (REC) purchasing, as well as the benefits of onsite solar, is critical to making an informed decision that will be most economical in the long term.
What is New York City LL97?
Given that buildings are responsible for 70% of NYC’s emissions, with over half of that coming from large buildings, New York City's Local Law 97 was passed in 2019 as part of the Climate Mobilization Act. It requires large buildings, including multi-tenant properties, to significantly reduce their greenhouse gas emissions. The law mandates that property owners lower emissions based on a building’s size and energy usage. LL97 sets emissions limits, and buildings that fail to comply will face substantial financial penalties.
What You Need to Know About LL97
- Targets Large Buildings - The law applies to buildings of all types over 25,000 square feet.
- Limits Emissions - As of 2024, buildings must not exceed the carbon emission limits set by LL97 based on their building occupancy type and square footage. Stricter emissions limits will apply in 2030.
- Penalties for Non-Compliance - Whether you fail to file the emissions report on time or your building exceeds its emissions limit, you will face substantial penalties. The fine for exceeding the emissions limit is $268 per metric ton of carbon dioxide equivalent over the limit.
- Exemptions - Certain buildings qualify for exemptions, such as hospitals and religious buildings, yet they must meet alternative requirements.
LL97 Compliance: The Limits of Offsite Community Solar and RECs
While subscribing tenants to offsite community solar programs and purchasing RECs require the least upfront investment by a property owner, these options are limited in their ability to offset building emissions. Both options can only be applied to emissions from the consumption of utility-supplied electricity due to a rule prohibiting property owners from using community solar subscriptions and RECs to deduct the building’s onsite fossil fuel emissions. Furthermore, for both offsite community solar and RECs purchasing, there are extensive verification, validation, accounting, and reporting requirements that are both timely and costly.
Why Onsite Solar is the Key to Meeting LL97 Emission Targets
Onsite solar, on the other hand, is a straightforward solution that reduces a building’s total emissions. It not only helps property owners avoid LL97 fines and a portion of utility costs from common area meters but also presents a revenue-generating opportunity. By investing in onsite solar, property owners can recover costs from tenants, thereby turning LL97 compliance into a profitable venture. Moreover, onsite solar increases property value and attracts sustainability-minded tenants, further enhancing the financial benefits.
Ivy Energy’s Solution for LL97 Compliance and Solar Billing
Ivy’s software solution is a robust tool that tracks and accounts for all emissions reductions associated with solar offsets down to 15-minute intervals. It packages the data in a way that can be easily verified by auditors, ensuring transparency and compliance. The software also provides a billing platform, simplifying the recovery of solar investment costs from tenants. By providing solar billing statements for the portion of the solar energy they consume, Ivy's software solution makes the process seamless and efficient. With Ivy’s turnkey solution, property owners can confidently turn LL97 compliance requirements into a revenue-generating and market-expanding opportunity.
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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