Virtual Net Metering (VNM) policies have been incredibly successful for multi-unit properties in California for years. Finally, other states have caught on to the benefits and are passing VNM policies of their own. Virtual Net Metering gives multi-unit properties the ability to fairly distribute solar energy. It provides property owners an additional net operating income, while also allowing their residents or commercial tenants to enjoy the benefits of solar from savings on their electric bill to reducing their carbon footprint. VNM has proven not only that it works and it makes sense, but also that it is a win-win situation for all parties. Ivy Energy is thrilled to see this policy finally expanding outside of California.
What is Virtual Net Metering?
You’re likely already familiar with Net Metering, which is the policy allowing single-family homes or single-unit properties to earn credits on their electricity bill for the excess solar power generated by their panels. Virtual Net Metering is essentially the same thing but applied to multi-unit properties. All of the energy generated by the solar asset feeds the grid, then the credits from the utility company can be equitably distributed between the property owner and residents. These credits translate to a discount on electricity, resulting in a lower monthly utility bill for everyone who participates.
The Benefits of Virtual Net Metering
As both an advocate for VNM and a solar billing software provider, Ivy has seen the benefits of Virtual Net Metering firsthand. Without Virtual Net Metering, a multi-unit property owner could invest in solar for a common area load, but not for sharing with their residents. This greatly limited the adoption of solar for multifamily and commercial real estate. Now, VNM has been working for years for the benefit of residents and owners. Some of the biggest benefits we’ve seen are:
- Equitable distribution of solar energy and savings
- Additional net operating income for property owners
- Improved accessibility of clean energy
- Opportunity to lower utility bills for low-income groups
- Increases attraction and retention of residents and commercial tenants
- Higher ESG (Environmental, Social, and Governance) and LEED (Leadership in Energy and Environmental Design) ratings
- Solar assets increasing property value
- Protects from rising electricity rates
- Further reduces emissions and reliance on fossil fuels
VNM and Ivy Energy’s Virtual Grid
Multi-unit property owners using Ivy’s Virtual Grid platform generate $500 to $1200 per unit per year in additional NOI. This means that VNM policies combined with the power of Ivy Energy transform a solar system from a sunk cost to an income-generating asset. It is a key step in achieving sustainability and renewable energy goals, and it finally makes solar pencil out for multi-unit properties. If Virtual Net Metering is being considered in your state, explore our resources on the topic or contact our team with any questions.
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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