Colorado is opening up new opportunities for multi-tenant solar thanks to recent policy shifts and programs like Energize Denver. Ivy Energy played a crucial role in getting multi-unit net metering passed in the state, giving property owners a way to earn new Net Operating Income (NOI) while staying compliant with local emissions rules. Here’s how Ivy’s solution is helping property owners tap into solar, and why Colorado is becoming a smart market for clean energy investments in multi-unit real estate.

Key Policies for Multi-Tenant Solar in Colorado

VNEM: A Game Changer for Multi-Tenant Solar

Ivy Energy played a crucial role in advocating for and helping to pass multi-unit net metering in Colorado. Multi-unit net metering allows property owners to allocate solar energy credits across multiple tenants, making solar a viable option for multi-tenant properties like apartment buildings, even across non-residential meters.

Currently, Xcel Energy is the only regulated utility offering this program, which allows for kWh netting across all meters on an allocation list, regardless of whether the meters serve commercial or residential units. With per kWh rates around $0.12, the program offers a financially attractive solution for property owners. 

This allows property owners to generate revenue from solar energy by offering savings to tenants while retaining part of the value, making solar financially attractive in ways it had not been before. Ivy Energy’s platform simplifies the allocation process, ensuring accurate billing and smooth integration with the utility’s allocation procedures.

Submetering for New Developments

While Colorado refers to submetering as “check-metering,” it permits master meter operators (MMOs) to distribute electricity and allocate costs to tenants as long as no markup is applied. Submetering is allowed for new construction, and Ivy Energy offers a single-bill solution for these properties, allowing them to meet energy management needs without unnecessary complexity.

Building Performance Colorado: Emission Reduction Requirements

The Building Performance Colorado program sets new emission reduction limits for buildings over 50,000 square feet, a key initiative to meet the state’s ambitious climate goals. For multi-tenant properties, this threshold is easily surpassed. A typical apartment unit ranges from 700 to 1,200 square feet, so a development with just 50 units, including shared spaces, hallways, and amenities, can exceed 50,000 square feet.

By integrating solar, property owners can fully meet their ESG (Environmental, Social, Governance) requirements. Rather than investing in multiple ESG projects with limited financial returns, solar energy offers a dual advantage—helping owners hit their sustainability targets while simultaneously creating NOI. Why sink costs into other ESG initiatives when solar allows you to achieve both compliance and profitability with a single project?

Energize Denver Program: Boosting Solar Adoption

In addition to the statewide program, one of the most significant drivers of the solar market in Colorado is the Energize Denver Program, which also aims to reduce building emissions by requiring large commercial and multi-tenant properties to meet specific energy efficiency and emissions standards by 2027. This regulatory framework is a game-changer for property owners who must comply or face steep fines.

The Energize Denver program is already putting pressure on property owners to act now. While the program's fines won’t take effect until 2027, the "threat" of penalties is pushing owners to explore solutions like solar energy. With Ivy Energy, multi-tenant property owners have a simple, scalable way to align with the Energize Denver goals, ensuring compliance and reducing their carbon footprint.

Favorable Solar Economics in Colorado: New NOI and Strong Returns for Property Owners

For property owners, investing in solar means tapping into an entirely new stream of NOI, all while meeting state energy regulations aimed at reducing carbon emissions. Property owners who adopt solar can expect:

• Annual NOI of $175 to $500 per unit, offering a consistent revenue stream for property owners.
• IRRs between 8% and 25%, depending on the property size and energy consumption.
• A payback period of around 7-9 years, making solar a long-term, financially sustainable investment.
• Solar investments contribute to significant property value increases, with similar VNEM markets like California seeing average 300-unit properties gain as much as $2.8 million in value during the first year alone.

Ivy Energy’s solar billing software further enhances these financial returns by automating the process of distributing solar savings to tenants, eliminating manual billing efforts, and ensuring that property owners can maximize their financial gains from solar energy.

Real-World Results: A Proven Path to NOI

Ivy Energy’s platform is already delivering significant returns for multi-tenant property owners in different regulatory landscapes, including the similar VNEM program in California. By leveraging VNEM, Ivy Energy has enabled properties to create substantial new income streams while meeting their ESG and sustainability goals.

As solar adoption in Colorado continues to grow, Ivy’s proprietary solar billing software provides the avenue for property owners to implement successful solar projects that reduce emissions and generate NOI—something no other solution in the market currently offers.

Solar Power is the Future of Multi-Tenant Buildings in Colorado

As Colorado continues to enforce stricter emission reduction goals, including through initiatives like Building Performance Colorado and Energize Denver, solar energy presents an unparalleled opportunity for property owners. With Ivy Energy’s proven platform, multi-tenant property owners can not only meet sustainability requirements but also generate significant new NOI from $175-$300 per door. The financial returns are clear: solar investments in Colorado offer robust IRRs, increased property value, and long-term compliance with state regulations. Now is the time to embrace solar as a dual solution for profitability and sustainability. By partnering with Ivy Energy, property owners can confidently navigate this transition and lead the charge toward a cleaner, more profitable future. Contact Ivy Energy today to learn how solar can transform your property portfolio.

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