Virtual Net Metering for Multi-Unit Buildings: Whitepaper
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Unlocking the Power of Virtual Net Metering for Multi-Unit Buildings: Whitepaper PDF
In this white paper, "Model Virtual Net Metering for Multi-Unit Buildings," prepared by Davis Giles, Scott Bechler, and Alana Steele, Ivy Energy explores the need for virtual net metering (VNEM) for multi-tenant buildings and its impact on both property owners and utilities. Ivy Energy’s model VNEM aims to streamline solar billing and maximize the benefits of distributed energy resources (DERs) for tenants, utilities, and property owners alike.
Metering Methods and Legislative Background
The paper covers various metering methods—master metering, submetering, and individual metering by the utility—explaining the pros and cons of each for solar integration. It emphasizes the effectiveness of submetering and discusses the legislative background (PURPA) that historically encouraged individual metering in multi-unit buildings. Many states interpreted this legislation to require that the utilities must do the individual metering, which is now complicating solar integration, as each unit would require a costly, dedicated solar system. The only alternative is a virtual billing approach, which VNEM enables.
State-Specific VNEM Programs and Ivy Energy’s Advocacy
Different states have developed VNEM programs with unique features. California’s program has shifted to restrict net metering to residential meters, affecting commercial and common area incentives for solar. Colorado’s model is more flexible with kWh credits and based on California’s original VNEM program, while Virginia’s approach provides fixed dollar credits. Ivy Energy’s advocacy has played an important role in shaping VNEM policies, particularly in California and Colorado.
Property-Wide Netting: A Game-Changer for DER Optimization
Ivy Energy’s VNEM model proposes property-wide netting to allow buildings to act as a single energy node, aggregating solar benefits and costs, which maximizes DER potential. Benefits of this approach include simplified billing, enhanced ESG reporting, emissions tracking, and more predictable load planning. Consolidated billing ensures tenants only pay for energy consumed, addressing equity by extending solar savings to renters and disadvantaged communities.
VNEM and the Future of EV Charging
Additionally, VNEM programs incentivize responsible EV charging and help mitigate peak demand, supporting grid reliability and cost efficiency. Through advanced data access and integration, Ivy’s model VNEM offers a scalable approach to integrating DERs in multi-tenant buildings, benefiting property owners, tenants, and the grid at large.
A Scalable Solution for Modern Energy Needs
With Ivy’s VNEM model, advanced data access and integration create a scalable solution that can be adapted to diverse jurisdictions. This model offers a path forward for multi-tenant solar adoption, enabling energy optimization that benefits property owners, tenants, and the grid.
Read the full whitepaper here for an in-depth exploration of Ivy Energy’s innovative VNEM approach: Model Virtual Net Metering for Multi-Unit Buildings.
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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