Virtual Net Metering for Multi Family Units: A Win-Win for All
The use of solar energy on multi-family properties has grown in popularity and application in the last 10 years. California, with its long and sunny days, has taken a leading role in making the most of this freely available source of power. The introduction of virtual net metering marked the beginning of solar energy being made available to multi-unit tenants outside of the high-income group. It boosted the opportunity of onsite shared solar communities providing increased accessibility to clean power sources for tenants. Virtual Net Metering takes away the challenges posed by the lack of space for solar panels and can be an effective solution to bringing cheap solar access to low-moderate income families. With VNM, renters can enjoy the benefits of solar access without having to go through the hassle of figuring it all out. Since renters have shared roofs in most cases doing solar on their own is not even a possibility.
What is Virtual Net Metering?
VNEM is an acronym for Virtual Net Energy Metering — which is just another name for Virtual Net Metering (VNM). So VNEM = VNM. (VNM) is a tariff arrangement that enables a multi-meter property owner to allocate the property's solar system's energy credits to tenants. The VNM tariffs were first piloted under the CSI Multi-family Affordable Solar Housing Program (MASH) as a means of providing equal and direct benefits of the solar system to low income tenants in an affordable housing complex. It is a simple yet mighty solution that brings solar to even those without homeownership These credits can be added to any utility account on the parcel of the VNM system.
Historically, multi-tenant buildings with individual electric meters for each tenant faced difficulties installing distributed solar PV systems because of the problem of assigning the benefits of the generation to each tenant account. A system could easily be connected to a common area load or to an individual tenant, but if it was connected directly to multiple loads, there would be no way of ensuring equitable distribution of the generation. Some tenants would benefit more than others. Installing multiple systems, one for each tenant or load in the building, is cost prohibitive. For more information on the specific information according to your utility provider visit the CPUC's VNM webpage-Virtual Net Metering (ca.gov)
Benefits of Opting for Virtual Net Metering
With the advent of virtual net metering, solar energy is becoming more affordable for a wide range of households, especially the multi-family units in California. This trend has resulted in a slew of developments in the market. Renters in multi-unit housing without roof rights still get to access clean energy to save money on utility bills. Currently, California is the most progressive state where landlords and renters in multi-family units can take advantage of VNM. Its adoption is flourishing rapidly due to the following reasons:
● Onsite Generation allows for direct Benefits to Tenants
(VNM) allows multi-tenant building owners to install a single solar system onsite to cover the electricity load of both common and tenant areas connected at the same service delivery point. The electricity does not flow directly to any tenant meter, but feeds directly back onto the grid. The participating utility then allocates the kilowatt hours from the energy produced by the solar PV generating system to both the building owner's and tenants' individual utility accounts, based on a pre-arranged allocation agreement. The idea behind VNM is to help tenants receive the direct benefits of the building's solar system, rather than all of the benefits only going to the building owner.
● Access to Additional Financing Options
Programs like California’s Multifamily Affordable Solar Housing (MASH) Program and other similar initiatives have been set to encourage more people to adopt solar and other cleaner sources of energy. Virtual net metering helps in creating a new channel to invest in solar energy and programs like these act as a catalyst for these investments.
● More Appealing Properties for Renters and Investors
A renter is more likely to choose a building that has onsite solar access opportunities compared to buildings that do not. Ivy's Virtual Grid software creates a fair model for distributing the benefits of VNM by providing access to clean energy benefits and guaranteed savings for residents, To learn more about the benefits Ivy provides to tenants visit-Residents (ivy-energy.com)
The aforementioned benefits are just some of the key reasons why every state should push for VNM, just like California. Creating a positive impact in lowering the cost of living and subsequently helping improve the finances of lower- and middle-income groups. VNM can involve the use of online billing software like Ivy’s Virtual Grid software which layers intelligence to the onsite solar system. Ivy’s solution takes into consideration real-time data to create a more equitable distribution of solar energy. It is the only company offering a fair model in the market today, offering a clear path to return on investment for property owners while providing guaranteed savings for tenants. It can be used with or without a property management system and is an ideal solution for those looking for simplified solar billing. Get in touch with Ivy today to learn more about the benefits Ivy provides to property owners- Profitable Solar for Multifamily Owners (ivy-energy.com)
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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