Navigating NY LL97: How Onsite Solar Can Save You From Fines and Boost Revenue

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. 

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