Article by:

Austin Young

Topics:

Solar

Published:

June 3, 2024

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Transforming Multifamily Buildings into Virtual Power Plants: The Role of Solar, Batteries, and Virtual Grid SaaS

Electricity has been a monopoly for over a century, due to the large economies of scale needed to deliver service. However, with the advancement of technology and new policies, you can now have a localized energy system, and your own virtual power plant (VPP). How? Through the integration of solar energy, battery storage, and Ivy Energy’s innovative solar billing software, Virtual Grid. In this article, we will explore how this powerful combination is revolutionizing the energy landscape, impacting the real estate market, and contributing to a sustainable future. Get ready to explore the limitless possibilities of VPPs and the future they hold for our energy systems and multifamily buildings.

What is a Virtual Power Plant?

A virtual power plant is a cutting-edge system of energy management and distribution that you can implement at your multifamily buildings. Unlike traditional power plants that rely on centralized generation facilities, a VPP is a network of your own onsite energy resources. By intelligently optimizing and dispatching the available energy using Virtual Grid software, a VPP can contribute to grid stability, enable renewable energy integration, and provide valuable grid services. Essentially, a virtual power plant harnesses the power of distributed energy resources, turning them into a flexible and dynamic virtual entity that can efficiently respond to the needs of the electricity grid without the need for increased transmission and distribution infrastructure.

How Does a Multifamily Building Transform into a Virtual Power Plant?

Multifamily building owners can now own their own piece of the grid by investing in solar energy and batteries. The solar panels generate energy onsite, then the batteries store excess energy to be used onsite when solar generation is low (e.g. cloudy days or at night). The batteries are an essential component because solar energy that is generated and used onsite is more valuable than the utility bill credits provided for excess energy exports. However, the final component of the multifamily building virtual power plant is the systems and processes to manage energy distribution and billing. That’s where Virtual Grid software comes in.

The Role of Solar Billing Software: Virtual Grid SaaS

If you’ve explored multifamily solar before, then you likely know of the traditional management and distribution methods of sub-metering or flat discounts. These fall short when it comes to the concept of virtual power plants. Virtual Grid SaaS (software as a service) offers proprietary algorithms for utility-grade, granular load monitoring, down to 15-minute increments to ensure accurate, equitable distribution and billing. And, it integrates directly with your existing rent ledger system, making management and payments a breeze. The technology automatically generates monthly solar bills for your residents, and the payments record as another line item of revenue in your billing ledger.

By harnessing the power of this cutting-edge software, multifamily building owners can revolutionize their participation in the electricity market. With Virtual Grid solar billing software you gain access to a comprehensive package that includes:

Intelligent cost recovery
Asset monetization
Performance monitoring
Optimization
And, the unwavering support of our dedicated team at Ivy.

We've mastered the ins and outs of distributing and billing for solar energy, so you can skip the steep learning curve. Our robust capabilities, smart grid logic, and proprietary algorithms enable you to provide fair and transparent billing for residents, and truly transform your multifamily building into a virtual power plant.

To learn more about how our Virtual Grid software works, read this blog post where we dive into the billing process and key features.

The Benefits of VPPs for Multifamily Buildings

The transformation of multifamily buildings into virtual power plants holds profound implications for the energy sector, real estate market, and wider society. It presents a significant opportunity to accelerate the transition to clean energy by leveraging distributed energy resources. By aggregating solar energy and battery storage across multiple units, virtual power plants can enhance grid resilience, reduce greenhouse gas emissions, and promote the integration of renewable energy sources. This not only contributes to a more sustainable and environmentally friendly energy sector but also aligns with the global efforts to combat climate change.

Additionally, from a real estate perspective, the implementation of virtual power plants adds value to multifamily properties. Buildings equipped with solar panels and advanced energy management systems become more attractive to environmentally conscious residents, providing a competitive edge in the market. Not only that but also virtual power plants can offer cost savings through optimized energy usage and the potential for revenue generation through energy sales.

On a societal level, the proliferation of virtual power plants empowers local communities, giving them greater control over their energy supply and reducing their dependence on the grid. This decentralization of power generation fosters energy independence, resilience, and a sense of community engagement. Ultimately, the transformation of multifamily buildings into virtual power plants brings about positive impacts on the energy sector, real estate market, and society as a whole.

Virtual Power Plants at Multifamily Buildings: Vital to the Future of Energy Management

Imagine a future where communities have the power to take charge of their energy supply, reduce reliance on the grid, and contribute to a greener and more resilient energy system. This future is becoming a reality with virtual power plants. Transforming your multifamily building into a VPP offers a multitude of benefits, ranging from increased energy efficiency and lower greenhouse gas emissions to bolstered grid resilience and the integration of more renewable energy sources. With VPPs, local communities can regain control over their energy destiny while supporting the overall infrastructure of the grid. In a world plagued by blackouts and utility issues, virtual power plants are the game-changers we need to transform our energy landscape and create a sustainable future for all.

Ready to turn your multifamily building into a virtual power plant with solar energy, batteries, and Virtual Grid? Request a demo today and step into the future of energy management!

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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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