As the demand for sustainable and eco-friendly housing solutions gains momentum, harnessing the power of the sun has emerged as a game-changer for multifamily buildings. In this article, we will explore the myriad benefits that solar energy brings to both owners and residents of multifamily buildings, showcasing how this green innovation creates a harmonious synergy of financial savings, environmental responsibility, and enhanced living experiences. From reduced operating costs to a greener footprint, discover why solar power proves to be a win-win for all involved parties in the multifamily housing sector.
How Property Owners Win With Solar Energy
Compliance with California Solar Mandates
Going solar complies with Title 24 of California’s building standard code. This policy orders new construction and many existing residential properties to have solar. Soon, solar-powered rental properties will be the golden standard for residents. The sooner a property gets solar, the better.
Increased Property Value
Your multifamily building may be instructed by California Assembly Bill 802 to report the energy usage of your property. Having solar power increases the energy efficiency of a property which makes it attractive to investors and property buyers. Thus, solar power helps increase your building’s property value.
Market Stand-out
Having solar power helps your property stand out in a saturated market. Solar power improves your ESG (Environmental, Social, and Governance) and LEED (Leadership in Energy and Environmental Design) scores. These scores are great marketing tools that attract environmentally conscious residents and reflect positively on the property.
Source of Net Operating Income (NOI)
With Ivy’s intelligent solar billing technology, Virtual Grid, property owners can experience solar energy benefits along with their residents. The software allows real estate owners to distribute solar energy between multiple units in an accurate, compliant, and data-driven user experience. Thus, solving the split incentive issue of multifamily solar as property owners receive benefits in the form of new NOI for their solar investment while providing their residents with clean energy and potential savings on their utility bills.
Increased Resident Retention
Solar power provides residents with a way to save money on utilities while caring for the environment. Most residents will choose solar-powered properties over others, especially if that means savings on their utility bills. Residents experiencing less expensive solar power are less likely to move to another property, returning to grid power and expensive utility bills.
Financially Profitable Investment
Switching to solar can be a financially profitable investment for a multifamily building. Real estate owners become solar energy hosts, unlocking a whole new level of sustainable income. With this innovative framework, you can distribute clean energy to your residents and generate automated net operating income (NOI) like never before. This is a game-changing solution for real estate owners seeking to boost profits without adding extra costs. You can share the solar benefits and costs with your residents, all while aligning with your financial objectives.
How Residents Win With Solar Energy
Access to Clean Energy
Almost half of Californians rent, and thus have limited say on where their power comes from. Unlike residential homeowners who can install solar power conveniently on their homes, renters do not have the same capabilities. By offering renters solar power, more families have access to clean energy and environmental sustainability.
Utility Bill Savings
Solar power is produced at a lower cost and can provide monthly savings on utility bills. Ivy's resident billing structure even includes a user-friendly and transparent way to demystify energy usage for every resident. With this simple system, understanding your energy consumption becomes a breeze. You'll easily see the amount of energy you used, the cost you would have incurred without solar power, your actual payment with solar, and most excitingly, the money you saved by being a part of the solar program. Furthermore, it includes insights for residents to optimize their savings by shifting high energy usage to live solar times.
Ease of Solar Billing
Solar billing with Ivy Energy’s support is simple, transparent, and consumer-friendly. Grid power bills are complicated with ever-increasing generation costs, distribution costs, and other costs most consumers are unfamiliar with. Solar power bills from Ivy Energy are straightforward and show the energy usage and the amount to pay (both what you would have paid without solar and what you pay with solar). Solar billing also calculates the environmental and financial savings you get by using solar.
Protection from Energy Rate Hikes
Electricity rates are ever-increasing and are easily affected by political and economic events, as well as natural disasters. Residents have to accept these rates because they have no alternatives otherwise. Solar power provides a sustainable choice for eco-conscious renters and solar power rates are locked in, offering protection from huge utility bill increases.
Solar + Ivy Energy: A Win-Win for Multifamily Buildings
Owners and residents win together with solar power and Ivy Energy in multifamily buildings. Ivy Energy makes solar power in multifamily buildings easy to use, understand and benefit from. Provide a win-win solar solution for your multifamily building. Connect with an Ivy team member to explore how solar is a win for your property!
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.”
