Virtual Net Metering on Multifamily Properties

How Multi Family Virtual Solar Works

In recent years, solar energy has become an increasingly popular and cost-effective way to power homes and businesses. However, for residents of multifamily housing units, the decision to install solar panels is not in their control. Property owners and managers are often responsible for the upkeep of common areas, including the roofs where solar panels can be installed. Additionally, residents in multifamily housing units may not have the financial means to invest in solar panels themselves. This is where Virtual Net Metering can come into play.

What is Virtual Net Metering?

Virtual Net Metering is a program that allows multiple users to share the benefits of a single solar installation. In essence, virtual net metering is a way to virtually allocate the energy produced by a solar system to individual tenants.

Benefits of Virtual Net Metering

For property owners, virtual net metering can provide a new stream of cash flow. By generating electricity through solar panels, they can become the energy producer of their properties. Legally, property owners can now charge their residents for their monthly energy bills just like rent.

For residents of multifamily housing units, it can allow them to take advantage of solar energy. Rather than investing in their own solar panels, residents can simply pay for the energy they use and receive credits for the energy produced by the solar panels on their building. This can lead to significant cost savings over time, especially as energy prices continue to rise.

In addition to cost savings, VNEM can also help to promote sustainability and reduce the carbon footprint of a building. By using renewable energy, residents and property owners can reduce their reliance on fossil fuels and contribute to a cleaner, healthier environment.

Does NEM 3.0 Affect VNEM?

With the solar world in California focused on the NEM 3.0 deadline of April 14th, the decision for properties that can utilize VNEM has not been finalized. Properties can grandfather their system into NEM 2.0 for 9 years past the deadline, unlike residential or commercial properties with one meter.

Overall, virtual net metering is an innovative solution that enables multifamily residents to utilize solar energy and property owners to unlock a new stream of cash flow. By sharing the benefits of a single solar installation, both parties can promote sustainability and contribute to a cleaner future.