H.G. Fenton wanted to power a 33-tenant property in San Diego with solar to provide renewable energy to the location’s business tenants. This project would break new ground as the first multi-tenant solar property in H.G. Fenton’s portfolio that would be capable of individual energy billing to tenants. It would serve as a model for other business park properties. The endeavor also needed to share energy cost savings with those tenants based on their proportionate use of the solar power produced on-site.
HES Solar designed and installed a 356-panel system on the roof of one single-story building at the business center. The array of 440-watt panels produces 156 kW of PV-generated electricity for the center’s tenants. Ivy Energy software was implemented to capture solar energy use, allocate energy savings based on tenants’ individual consumption of that energy, and provide a convenient and lucid solar energy billing system for both tenant and property owner.
Fourteen solar arrays have turned one large rooftop into an additional revenue stream for the property. Each unit increases its market value in the commercial space by presenting a location that enables clean, green energy use. The billing software unlocks new revenue-generating potential of multi-tenant properties.
Each tenant directly benefits with energy cost savings as they power their businesses with non-distributed renewable energy; this is the most environmentally-beneficial power option available.
H.G. Fenton realized immediate tax benefits through the Investment Tax Credit, California’s MACRS Depreciation, and the Federal 100% Bonus depreciation option to offset the project’s cost and create a quick payback period. Going forward the property maintains a strong energy revenue stream and tenants benefit with lower energy costs to their businesses.
“Ivy Energy provided a turnkey solar billing solution for H.G. Fenton to increase net operating income by deploying and managing solar energy assets. We take the guesswork out of the solar investment by collecting H.G. Fenton’s tenants’ historical energy usage data and providing long-term revenue forecasts and a simulation of the customer experience. By removing upfront risk, we shorten the path to sustainable living and hassle-free financial gains, providing a win-win experience for H.G. Fenton and Carmel Business Center tenants.“
Colin Walsh, Head of Sales Operations, Ivy Energy
Net Energy Metering 3.0 (NEM 3.0) is the incoming law created by the California Public Utilities Commission (CPUC). The new tariffs and fees will impact both residential and commercial solar systems built in California.
As this notice is posted in November of 2022, the Proposed Decision from the CPUC outlining the proposed NEM 3.0 terms is expected soon. This comes after a year’s delay. Once the new agreement is finalized and passed into law, there will exist a designation of the deadline under which new systems will continue to qualify for NEM 2.0 rates.
The new NEM 3.0 rates will be designed to lower the value of electricity during the daytime hours, when solar is producing, and increase the value of electricity during the evening hours, when solar homes and businesses purchase electricity. In short, NEM 3.0 will create a “sell low, buy high” proposition to new solar system owners.
To Californians looking to install a solar system on their home or commercial building, the NEM 2.0 rates will be preferred. As of this post, the solar industry does not know the details of how different the NEM 3.0 rates will be from the NEM 2.0 rates.
Please use the HES Solar website as a resource to learn more, and please take our offer to speak with an HES Solar Energy Consultant at no obligation.
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