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Multifamily housing includes housing where multiple separate housing units for residential inhabitants are contained within one building or several buildings within one complex, a common example being apartment buildings and duplexes. By providing installation of solar batteries to affordable multifamily housing, energy bills would decline as much as 99 percent. For example, in Seattle, apartments are numerous in which they make up nearly 40 percent of occupied housing, and renters make up over 50 percent of the city’s residents. (Stats provided by IREC). Though the city of Seattle is known for advocating for sustainability and climate action, there are very few sustainable options for residents of multifamily housing to access the usage of clean energy. Seattle’s energy policies that are already in place have been beneficial to residents by providing available access to clean, efficient, and renewable energy resources, but these current programs are largely in favor of single-family homeowners. “There are two potential paths to enable greater solar access for renters and multifamily residents, and low-to-moderate income communities: (1) on-site shared solar, via an arrangement that allows energy generation credits from a single solar system to be shared virtually among multiple tenant accounts; and (2) off-site/remote shared solar, which allows multiple dispersed customers to share the economic benefits of a single renewable energy system and receive credits on their utility bills for the electricity generated by that common system,” (IREC).
California is widely known to act fast on providing sustainable options, such as solar systems in housing. The California Public Utilities Commission (CPUC) approved of a new Solar on Multifamily Affordable Housing (SOMAH) program for low-income apartment tenants in December of 2017. Before SOMAH, property owners would pay for the electricity being used in the complex’s common areas, but not in the individual units. The solar photovoltaic systems that were introduced to these properties are normally only used to offset electricity in these areas in which the property owners receive the savings, leaving nothing for the tenants. The implantation of the SOMAH project will now strive to benefit the tenants, as well as continue to benefit the property owners, by offsetting the tenants’ individual utility bill as well.
Now it’s a win-win for both tenants and property owners! Though these solar systems owners will be eligible to receive a 30% Federal Incentive Tax Credit with the purchase of this system, property owners are required to sign a contract to assure tenants that no additional costs for the system will be their responsibility, which means that increased rents, adjustments to utility allowances, etc. will not be allowed. In addition, low-income tenants will receive credits on utility bills through tariffs, more specifically virtual net metering (VNEM) tariffs.
Respectively, this program will create jobs that promote economic development in underprivileged areas, with the condition that program service provides must provide these job opportunities to the residents of that disadvantaged community.
-Rachel Knight
Sources:
https://irecusa.org/2017/12/new-guide-for-multifamily-solar/
https://irecusa.org/expanding-solar-access-pathways-for-multifamily-housing/