getting connected with virtual net energy metering (vnem) - solar for multi-unit buildings and...
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Encounters
Getting Connected With VNEMIntersolar North AmericaTuesday July 12, 2016Ross Williams, VP, Home Energy Systems
ExperienceFirst market rate NEM-V project in CaliforniaSolterra Eco-Luxury Apartment Homes in San DiegoCommissioned in 2014114 Units and four house metersFour service delivery pointsSince then I installed and commissioned an additional 306 units on three different propertiesAquatera 254 unitsQuince Park 42 units, two house metersMarinella 10 units, one house meterAlso have experience in NEM Aggregation
OpportunitiesOver 3.9 million units of multi-family housing in CaliforniaRoughly 35-40% of all housing in California are apartmentsA very small percentage are powered by solarVirtually every site can offset house meters (HM) at a minimumCan be used for HMs only or for HMs and/or unit meters.Marketing - solar is desirable and trendyCan nicely complement a rehabilitation projectNet Metering Aggregation is another opportunity on multi-family housing but is a little different and has its own set of rules
NEM-V vs. NEM AggregationNEM-VLimited to one propertyAccount names do not have to be the sameCan offset tenant accounts and house metersRequires net generation output meter or NGOMAllocation is defined as a % of productionNEM AggregationCan cross property lines but all properties must be contiguous and owned by same ownerAccounts must be in same nameTypically only house meterCan use existing meter or an NGOMAllocation is dynamic based on consumption
EconomicsOwners receive 30% investment tax credit and depreciation tax savingsNo additional application fees or costs with exception of NGOM costsProvides significant cost savings and efficiency in installation labor and equipment Average $1000 savings per unit vs traditional interconnectionElectricity is included in rent up to the kWh allowanceEncourages tenant conservationPressure to stay within the allocation so the bill is minimalAbility to realize more revenue without adding square feetIf property utilization is maxed out it enables increase of revenues
Economics contNew Solar Homes Partnership (NSHP) rebate eligible for new construction projectsHouse meters only option also qualifiesNSHP is currently at step 8 Marketing strategiesOur property is still at market rate but comes with free electricityAchieve higher occupancy ratesFaster occupancy for new construction
MarketingTrendy to be green and environmentally responsibleTenants are more proud to be in a solar powered communityAbility to brand property as efficient and energy conscienceGives a property a competitive advantage over comparable properties without solar
Marketing contCouple with other advanced technologies:Nest thermostats other brands available. Smart thermostatsRainforest automation real time consumption dataSmart appliances control when and how certain appliances operateMake them feel like they are living in a technologically advanced space.Give the tenant the ability to optimize and control their energy consumption
ChallengesDisconnects on both sides of the net generation output meter or NGOMConsumption and power usage studyDifficult to get the consumption data from tenantsProper system sizing dependent on accurate data that is hard to come byPost install - Is it working? How can the owner or contractor tell?I know the solar is working, but how do I know if the tenants are getting the credits?How can I be sure the credits are being applied accurately and correctly?
Challenges ContFuture Time of Use (TOU) implications? Site specific space constraintsUnder NEM 1.0 each NEM-V system could only serve a single service delivery pointSo for every service delivery point they required a separate systemUnder NEM 2.0 the service delivery point restriction is eliminatedNEM 2.0
NEM 2.0Hit NEM-V harder than other programsNGOM net generation output meter MUST be used100% of the production of the system gets the non by-passable charges (NBC) haircutAverage current haircut is around 10% or 2 cents/ kWh in CAUnlike standard interconnection type where the NBCs are based on net export
EncountersUtility IssuesDifficult to set up and it takes a very long time for the NEM-V application to be approved
Billing issuesCan take up to 6 months to process before credits start showing up on tenants accountsOne lump sum adjustment once the accounts are set upCan negatively affect a tenant that moves out before the credit shows upVery difficult to understand and manage from tenant, contractor and property owner point of viewThis needs to be fixed
Solar Breakers
NGOM -There must be solar disconnects on either side.Flow of energyUnit, house, or apartment meters.
Solar BreakersNGOMFlow of EnergyUnit Meters
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Questions & Contact InformationRoss [email protected](619) 417-0098Home Energy Systems5980 Fairmount Avenue, Suite #105San Diego, CA 92120