Why a Profitable Green Building Is More Attractive to Tenants
With the world going towards a more sustainable future, it's important to take steps to reduce emissions from power plants and provide clean electricity for people all over the world or at least offer alternatives that reduce their dependence on traditional sources of power. Buildings that help in conserving non-renewable resources and incorporate green initiatives like solar-powered housing help improve the curb appeal of the properties.
What is Green Housing?
Green housing is defined as a property that utilizes renewable energy sources to produce electricity or heat. It aims at creating a better quality of life for those residing while making sure that the resources like energy and water are used judiciously. The benefits from such green buildings percolate right to the grassroots level and offer something for all the parties involved.
Why should Developers Go Green?
Sustainability is now at the very top of renters concerns. Economic, governmental, and public opinion around the world is committed to making a multilateral, unequivocal response to curb climate change. It's estimated that by 2045 there will be 2.3 billion apartments and condos built throughout the world. As rents and real estate prices rise, developers are finding new ways to keep their properties from sitting vacant. One way is by implementing sustainable green energy systems into the buildings they build as home-buyers, especially in the millennial demographics, actively seek out homes that are eco-friendly. Green building developers can enjoy special benefits in financing like free energy audits and other substantial savings in the beginning as well as in the long run.
Why are homebuyers and renters attracted to green buildings?
There are many benefits of living or investing in a green building including lower monthly utility bills and being able to help make the environment cleaner for future generations. With flood and fire stories dominating the news, business leaders must act collectively to show they’re making real change happen, implementing viable, comprehensive sustainability strategies, right now. Lowering utility cost and using innovative split incentive technology such as Virtual Grid combined with a onsite solar asset can allow you to realize a new net operating income outside of increasing rent.
As a property owner, you may find that leasing such apartments can be quite profitable. Landlords of multi-family properties are starting to take advantage of the fact that green-certified apartments require less money for upkeep and maintenance than traditional apartment units. In addition, green units allow large-scale green projects to become reality on a much larger scale than they would be possible with traditional apartment buildings.
Further, with policies like virtual net metering, traditional multi-family units can be easily turned into a more eco-friendly option without even requiring the tenants or landlords to invest in any kind of hardware.
However, there are several factors you may need to be considered when incorporating green initiatives:
- Although green initiatives have been around for a while, there are still markets where these developments are still in their nascency. Understand your market fully well before incorporating any new changes.
- The immediate costs of appliances and other fittings for green homes can be higher as compared to the other alternatives. There is no denying that the long-term benefits make up for the cost but it is important that investors have the resources or accessibility to green financing to switch to green buildings.
- Evaluate every green initiative you add to your building as some of them, say like a rooftop garden, may end up nullifying other efforts. In this case, a rooftop garden can negate your water conservation programs.
- Work with a certified solar installer and Ivy to make sure you maximize the most of your space and build an optimized system to get the best ROI.
At the simplest level, it's about the environment. While their is a huge pressure to create a sustainable organization, it can be turned into significant business benefits and opportunities. Low carbon transition will lead to beneficial business shifts when critical goals are translated into positive actions .Green multi-family units are extremely lucrative as there is a vast market to capture and hence jumping on to the bandwagon at the earliest can prove beneficial. Historically, landlords and developers were not incentivized to provide clean energy benefits to their tenants due to the split incentive problem. Also, tenants did not have options in the marketplace to choose which energy provider they wanted. Now in the 21st century property owners have the opportunity to offer solar energy to tenants at a discounted rate in comparison to local utility rates. Learn how Ivy’s Virtual Grid Software can help you turn green housing investments into a new line item of revenue while also increasing the market appeal of your community. https://www.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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