Home Energy Systems', Vice President, Ross Williams spoke about Virtual Net Energy Metering (VNEM) on Tuesday, July 12th at Intersolar North America 2016.
This slideshow will teach you about what VNEM is, how it benefits apartment complexes or high-density living area, and the challenges that were presented along the way.
Virtual net metering can provide and excellent return on investment for apartment owners. Not too long ago if you wanted to install a solar system for an apartment complex you would need to split it into mini systems for each unit. Now with virtual net metering it is possible to have one large system, electronically divide up all the credits and remotely assign them to the tenants of the complex, saving a significant amount on installation and equipment.
Home Energy Systems was the first to install a net metered system and is a leading installer of virtually net metered systems. Ross Williams was able to speak on the advantages and hurdles currently facing the installation of virtual net metered systems.
“We have worked hard to become experts in this arena. I am excited to be part of the VNEM panel and to help educate business owners on the huge savings potential and environmental impact,” said Ross Williams.
You can also find the full video and audio presentation of this slide show here: https://youtu.be/GK1TaXpwAiA
If you or anyone you know is interested in a virtual net metering system for their apartment complex or business contact us at hessolar@gmail.com
2. EXPERIENCE
First market rate NEM-V project in California
Solterra “Eco-Luxury” Apartment Homes in San Diego
Commissioned in 2014
114 Units and four house meters
Four “service delivery points”
Since then I installed and commissioned an additional 306 units
on three different properties
Aquatera – 254 units
Quince Park – 42 units, two house meters
Marinella – 10 units, one house meter
Also have experience in NEM Aggregation
3. OPPORTUNITIES
Over 3.9 million units of multi-family housing in California
Roughly 35-40% of all housing in California are apartments
A very small percentage are powered by solar
Virtually every site can offset house meters (HM) at a minimum
Can be used for HMs only or for HMs and/or unit meters.
Marketing - solar is desirable and trendy
Can nicely complement a rehabilitation project
Net Metering Aggregation is another opportunity on multi-family
housing but is a little different and has its own set of rules
4. NEM-V VS. NEM AGGREGATION
NEM-V
Limited to one property
Account names do not have to
be the same
Can offset tenant accounts and
house meters
Requires net generation output
meter or “NGOM”
Allocation is defined as a % of
production
NEM Aggregation
Can cross property lines but all
properties must be contiguous
and owned by same owner
Accounts must be in same
name
Typically only house meter
Can use existing meter or an
NGOM
Allocation is dynamic based on
consumption
5. ECONOMICS
Owners receive 30% investment tax credit and depreciation tax savings
No additional application fees or costs with exception of NGOM costs
Provides significant cost savings and efficiency in installation labor and
equipment
Average $1000 savings per unit vs traditional interconnection
Electricity is included in rent up to the kWh allowance
Encourages tenant conservation
Pressure to stay within the allocation so the bill is minimal
Ability to realize more revenue without adding square feet
If property utilization is maxed out it enables increase of revenues
6. ECONOMICS CONT…
New Solar Homes Partnership (NSHP) rebate eligible for new construction projec
House meters only option also qualifies
NSHP is currently at step 8
Marketing strategies
Our property is still at market rate but comes with “free electricity”
Achieve higher occupancy rates
Faster occupancy for new construction
7. MARKETING
Trendy to be “green” and environmentally responsible
Tenants are more proud to be in a solar powered community
Ability to brand property as efficient and energy conscience
Gives a property a competitive advantage over comparable
properties without solar
8. MARKETING CONT…
Couple with other advanced technologies:
Nest thermostats – other brands available. Smart thermostats
Rainforest automation – real time consumption data
Smart appliances – control when and how certain appliances operate
Make them feel like they are living in a technologically advanced space.
Give the tenant the ability to optimize and control their
energy consumption
9. CHALLENGES
Disconnects on both sides of the “net generation output meter” or
NGOM
Consumption and power usage study
Difficult to get the consumption data from tenants
Proper system sizing – dependent on accurate data that is hard to
come by
Post 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?
10. CHALLENGES CONT…
Future – Time of Use (TOU) implications?
Site specific space constraints
Under NEM 1.0 each NEM-V system could only serve a single service delivery
point
So for every service delivery point they required a separate system
Under NEM 2.0 the service delivery point restriction is eliminated
NEM 2.0
11. NEM 2.0
Hit NEM-V harder than other programs
NGOM – net generation output meter MUST be used
100% of the production of the system gets the non by-passable
charges (NBC) haircut
Average current “haircut” is around 10% or 2 cents/ kWh in CA
Unlike standard interconnection type where the NBCs are
based on net export
12. ENCOUNTERS
Utility Issues
Difficult to set up and it takes a very long time for the NEM-V application to be
“approved”
Billing issues
Can take up to 6 months to process before credits start showing up on tenants
accounts
One lump sum adjustment once the accounts are set up
Can negatively affect a tenant that moves out before the credit shows up
Very difficult to understand and manage from tenant, contractor and property
owner point of view
This needs to be fixed
13. 1. Solar
Breakers
2. NGOM -
There must
be solar
disconnects
on either
side.
3. Flow of
energy
4. Unit,
house, or
apartment
meters.
Solar Breakers
NGOM
Flow of
Energy
Unit
Meters
18. QUESTIONS & CONTACT
INFORMATION
Ross Williams
ross@hessolar.com
(619) 417-0098
Home Energy Systems
5980 Fairmount Avenue, Suite #105
San Diego, CA 92120