Solar For Multi-Family Housing
If you run an apartment complex or own several rental properties, adding commercial solar panels can help you minimize the energy expenditures for yourself and your tenants. You may even attract more tenants to your building, as you will now be able to advertise as a green property!
High ROIs (returns on investment) and an increase in property value are achievable through 100% renewable solar power for your multi-family property in southern California. TENCO SOLAR makes the installation, maintenance, solar panel battery storage, and commercial financing processes hassle-free for multi-family property management companies.
Solar energy systems are an investment in the future of clean energy, and multi-family properties are at the forefront of modeling solar energy as a simple power solution. That's why we offer financing options specific to multi-family projects that will help you accelerate your payback and start seeing the benefits of solar energy quickly.
Multi-Family Developers We've Worked With:
Advantages Of Solar Energy For Mutli-family Builders
California builders that switch to energy generated by solar panels will enjoy four key benefits that make the investment worth it:
Comply with Title 24
Ensure your solar installations meet California's Title 24 energy efficiency standards.
Beat Rising Costs
Electricity is consistently becoming more expensive and a bigger burden for tenants. Going solar means competitive rates for tenants and predictable costs for property owners.
Improve Optics
Attract eco-conscious tenants and advertise your building as a green property while taking advantage of solar-specific tax programs.
Ample Incentives
Attract eco-conscious tenants and advertise your building as a green property while taking advantage of solar-specific tax programs.
Multi-Family Housing Financing
Our team of commercial solar experts can help you explore which multi-family housing financing option is right for your project, so that you can take advantage of all of the benefits of solar panels as soon as possible.
Many of our multi-family property owners have benefited from the FANNIE-MAE DUS financing described here.
Successful Multi-Family Installations
TENCO SOLAR has completed many large Multi-Family Solar Installations, ranging from 100KW to over 2 MW
Choose TENCO SOLAR
For solar energy services that can guide you through installation, financing, and routine maintenance, choose TENCO SOLAR. Our solar panel experts know the right questions to ask and have the tools to lead you to the tax incentives and accelerated depreciation options that will yield the best results for your multi-family property.
Incentive Programs Available
At TENCO SOLAR, we understand that transitioning to solar energy involves an investment. We can help you find the best program or financing option for your project.
Please see our page on Commercial Tax Benefits for more information on the 30% Investment Tax Credit (ITC).
In addition to the 30% ITC, a project can qualify for additional or bonus tax credits, including the Low Income Adder.
Note: We are still awaiting final guidance from the US Department of Treasury on the requirements for the Adder described below.
To qualify for this adder, projects must be:
- Be placed in a low-income area (per the census track)
- Be under 5 megawatts
- Be classified as a “qualified low-income residential building project” or “qualified low-income economic benefit project.”
- Allocate the financial benefits of the solar project equitably between the residents.
If these qualifications are met, projects may receive a 20 percentage point increase in value of the ITC (30% -> 50%).
Affordable housing properties in California can qualify for state-funded solar panel incentives through the Solar on Multifamily Affordable Housing (SOMAH) Program.
The SOMAH Program was designed to provide financial incentives for installing solar panel systems that benefit both property owners and low-income tenants by delivering credits on energy bills to residents that otherwise would not have access to solar energy for their homes.
Property Eligibility Requirements
SOMAH eligibility requires that a property must:
- Have at least five units.
- Be deed-restricted low-income residential housing.
- Satisfy one of the following:
- 80% of the property residents have incomes at, or below, 60% of the area median income (AMI). OR
- Property is in a defined disadvantaged community (DAC) that scores in the top 25% of census tracts statewide in the CalEnviroScreen.
- Be an existing building or retrofit.
- Have separately metered units.
- Be a utility or community choice aggregator (CCA) customer (with VNEM) in one of the following territories:
- Pacific Gas and Electric (PG&E)
- Southern California Edison (SCE)
- San Diego Gas & Electric (SDG&E)
- PacifiCorp
- Liberty Utilities
VNEM is a tariff arrangement that enables a multi-meter property owner to allocate the property's solar system's energy credits to tenants. Instead of flowing to the tenants' meters, the generated electricity feeds directly back onto the grid and the participating utility then allocates the kilowatt-hours received to both the building owner's and tenants' individual utility accounts, based on a pre-determined allocation agreement. VNEM tariffs were first piloted under the Multi-family Affordable Solar Housing Program (MASH) as a means of providing direct benefits of the solar system to low-income tenants in an affordable housing complex.
Unlike other multi-family housing projects, all VNEM projects will continue to be compensated according to Net Billing 2.0. Customers with a signed contract and a completed Net Billing application before April 14, 2023, will be locked into the Net Billing 2.0 rates for 20 years. Customers that complete their application after April 14 will be guaranteed Net Billing 2.0 rates for 9 years.
Get a Quote
Contact TENCO SOLAR for more information about the steps and processes we follow to ensure that each commercial solar project we install exceeds your highest expectations.
