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.

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