A simple guide on title 24 mandates in California and how it affects multi-family housing
California has committed to run off of 100% renewable energy by 2045. Policies to reach this goal are already in place. These policies and codes will bring about a change in the way of working and living for residents in the state in many ways. Title 24 is an effort in this direction to make California achieve its renewable energy plans.
What is Title 24?
Title 24 is the body of Building Energy Efficiency Standards directed to take care of energy efficiency in all buildings, irrespective of whether they are old or new. These standards are updated every three years by the California Energy Commission in collaboration with stakeholders through a public and transparent process.
Title 24 brings those who own, manage, and live in the buildings together to create more energy efficiency. There are different mandates for commercial and residential buildings with the latter warranting attention to how some building functions like lighting and ventilation are designed and operated.
Title 24 is updated every three years to keep time with rapidly evolving developments in efficiency technology, with the most recent changes going into effect in January 2020.
What changes does the recent Title 24 update mean for residential buildings?
The state continues to increase strict mandates about energy efficiency as characterized in the new 2019 Title 24 code. Before this recent code change, multi-family building owners have had little to no incentive to adopt on-site renewable energy as there has been no efficient and fair way to monetize their investment through their tenant’s consumption.
With the recent code change, Title 24 is now requiring These solar requirements will only continue to get stricter as we approach the 2045 California state goal.
Most developers and apartment owners view this as a problem, but some are seeing the opportunity to add a new revenue stream to their properties by producing energy through shared solar assets and selling that energy to their residents.
Requirements for Multi-Family Housing Structures
Here are some of the changes that will be required as per the latest updates that came into effect in January 2020:
- In 2019, the regulations for single-family and multi-family structures were segregated. Although the regulations for both categories seem similar now, multi-family buildings will eventually find unique set of regulations and will be created as a new category.
- Solar zones whose area is not less than 15% of the total roof area of a building(without the skylight area) to be installed. These solar zones can be located either on the roof, overhang of the building, or overhang of any other structure that is within a distance of 250 feet. This applies to low-rise multifamily buildings and is inclusive of structures with mixed occupancy.(Read about the exceptions here)
- Low-rise multifamily buildings that have interior common areas within a single structure is up to 20 percent of the floor area to be controlled by occupant sensor.
- The lighting requirements as per the latest update calls for permanent labels displaying maximum rate wattage, independent manual control(separate controls for each room), provisions for multi-level lighting control, improved shutoff controls(includes occupant sensors, automatic time switches, and other similar controls), and daylighting controls among the others.
- Multi-family buildings to provide on-site renewable energy. This new requirement can require a developer to offset roughly 50-60% of the about and tenant’s total energy consumption.
Most developers and apartment owners view the responsibility for creating provisions for on-site renewable energy as a problem, but some are seeing the opportunity to add a new revenue stream to their properties by producing energy through shared solar assets and selling that energy to their residents. Some of the upgrades called for by the latest updates can be a game-changer in the long run when it comes to creating improved building functionality.
Title 24, Section 6 Explained
Section 6 of Title 24 is the very first solar mandate in the US. This mandate calls for solar energy provisions for all newly built residential structures. These include installing solar panels for electricity and water heating needs for creating more energy efficiency and savings on utility. The mandate is an encouraging factor for the rise of practices of share solar distribution systems in multi-family dwellings.
Understanding and achieving compliance with section 6 of Title 24 requires a depth of knowledge that comes with years of experience. This article only touches on a couple of key changes that came down the pike in January, More information is readily available from the California Public Utilities Commission.
If you are the owner of a multi-family housing facility, Ivy can help you meet these compliances in a hassle-free and beneficial manner. It provides turnkey solutions for ensuring that property owners can get the most out of their solar assets. Ivy helps residents or tenants of multi-family structures get easy access to solar energy. Moreover, the solutions provided by Ivy make it easier for its users to understand their energy consumption and expenses through an easy and transparent process. Ivy brings the best of technology in the area of solar energy and related solutions to the table to make it easier for all to comply with Title 24.
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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