Unlocking the Financial Benefits of Multi-tenant Solar in Massachusetts

Massachusetts offers a highly favorable landscape for multi-tenant solar projects, especially given its high electricity rates and a suite of state-backed incentives. With rising utility rates and innovative energy storage programs, property owners have a prime opportunity to generate new Net Operating Income (NOI) while supporting sustainability efforts. By working with leading solar installers in the state, Ivy Energy is helping to unlock these financial opportunities for multifamily property owners.

High Electricity Rates: The Key Driver of Solar Economics

In Massachusetts, electricity rates are significantly higher than the national average–between $0.32 and $0.36 per kWh–creating a prime environment for property owners to capitalize on solar energy investments. These rates are set to rise further by the end of the year, making solar projects an attractive option for offsetting costs.

Favorable Financial Returns: Generating New NOI, Strong IRRs, and Quick Paybacks with Multi-tenant Solar

For multi-tenant properties in Massachusetts, solar investments are yielding impressive financial results. With Ivy Energy’s solutions, property owners who adopt solar energy not only reduce their energy bills but also position themselves to generate new NOI between $400 and $1,200 per unit. By implementing the virtual grid solar billing software, multi-tenant property owners can seamlessly allocate solar energy savings to tenants, maximizing the value of solar installations.

This innovative solution allows properties to install individual behind-the-meter (BTM) systems or offer a community solar program, both of which offer significant financial returns. The key financial highlights of investing in solar include:

• High Internal Rate of Return (IRR): Property owners can expect an IRR in the high 20s.
• Short Payback Period: Less than six years for typical BTM installations.
• Increased Market Value: Solar investments contribute to significant property value increases, as seen in similar markets like California, where average 300-unit properties experienced value gains of $2.8 million in the first year.

These metrics make solar projects not only financially viable but highly lucrative for property owners looking to enhance their assets and generate ongoing NOI. Furthermore, Ivy’s platform eliminates billing challenges and automates the distribution of solar savings to tenants, creating a smooth, scalable approach to solar billing.

Metering Options and Solar Incentives in Massachusetts

Despite Massachusetts’ regulations restricting submetering in new construction, Ivy Energy provides solutions through its virtual grid solar billing software. Ivy’s platform can support Neighborhood Net Metering, allowing property owners to allocate solar credits across tenants, similar to community solar programs, and individual BTM systems to streamline operations while maximizing returns.

Several incentives are available in Massachusetts to further boost the financial benefits of solar projects, including:

• SMART Program: The Solar Massachusetts Renewable Target (SMART) program provides a fixed 10-year incentive of $0.0617 per kWh for PV systems, with additional adders for pairing PV with energy storage.
• Clean Peak Standard: This program rewards solar systems that discharge during peak demand hours, with multipliers for seasonal peaks and battery storage integration.
• Connected Solutions Demand Response: Property owners can monetize battery storage through demand response events, earning up to $275 per kW during summer months.

With these programs, solar projects in Massachusetts are not only helping to lower energy costs but also supporting grid stability and reducing carbon emissions.

Partnering with Massachusetts’ Top Solar Installers

Ivy Energy collaborates with leading solar installers across the state to provide property owners with expert installation services and seamless integration with their billing platform. Additionally, Ivy Energy has a proven track record of working with some of the country’s largest REITs and multifamily property owners, delivering impressive financial results through solar adoption. The Director of Asset Management for AvalonBay Communities stated, “From the initial onboarding to the implementation phase, we have built a strong partnership with Ivy Energy. Their team’s expertise and dedication ensured a smooth and efficient transition to solar power at our properties. The support we received throughout the process was excellent, with Ivy Energy demonstrating a deep understanding of our needs and providing tailored solutions.”

Seize the Solar Opportunity in Massachusetts

The solar market in Massachusetts is ripe for investment, with high utility rates, strong incentives, and proven financial returns, making it an ideal time for multi-tenant property owners to adopt solar. By partnering with Ivy Energy, property owners can confidently invest in solar, knowing the financial returns are both substantial and achievable. Now is the time to tap into these opportunities, enhance property values, and generate new NOI through solar energy. Reach out to Ivy Energy to learn how they can help you unlock the full potential of solar for your multi-tenant properties.

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