All Forum Posts by: Robert Lubell

@Justin R. If the local utility supports Net Metering aggregation then you can essentially "assign" how much production from a single PV system goes to each unit, then with the right platform/systems in place you could bill tenants based on their individual allocated production (I happen to be in this type of multifamily solar niche). I see you're in San Diego so you're probably familiar with SDG&E. They have NEM-AG and Virtual Net Metering in their policy which allows for exactly this to occur which is pretty awesome.

@Travis Zuehls Yes, you're right about solar yield there. It's a matter of modeling out the project and crossing that with all available solar incentives (tax, state, and utility). Sometimes areas with less sun can still be a good candidate for solar because some local incentives are better than others. Sometimes not. 


I'm down in sunny San Diego but coincidentally working with a referred solar project up in WA so looking into local policies.  I'll share how it plays out. 

There is innovative energy monitoring/submetering available that allows for electric use to be accurately metered among tenants without separate traditional meters/submeters, and it is an insignificant cost to implement & an accurate alternative to RUBS. Happy to connect to discuss more.

If obliged you could also install onsite solar and sell generated power directly to tenants leveraging the same tech^ (fine to do so as long as you aren't charging a higher rate than the utility). Can be a nice boost in cashflow in markets with higher electric rates and/or solar incentives.

@Richard Ballard @Jeremy Marek

If the owner keeps the power bill(s) in their name, they can pass that cost to tenants (handful of methods for this), then install solar, and keep the savings margin as additional monthly income / NOI

In some markets with high enough electric rates it could make sense to install solar onsite and sell the generated power to tenants for additional monthly income / NOI

Eric, I'd love to connect and talk on this topic. I have experience with multifamily solar projects and how to implement it in a way to be both profitable and pass a savings to tenants (regardless if the building is master metered or individually metered). 

Sent you a connect.

Hope to talk more soon!

Meth. Hell of a drug.

As a general statement, from what I've always heard from investors & podcasts, etc..  your net cashflow will be much greater as whole by investing a certain amount into several cheaper out of state properties rather than investing the same amount into one CA property. 

@Daniel Rutledge My experience has been if the solar is owned, there is nothing but benefit. Obviously, a home with a lower cost of energy than the same home with higher cost of energy is a no-brainer comparison from a buyers perspective, especially in areas with high utility rates. As far as appraisals go, Fanny Mae now directly backs up the added appraised value of solar on homes with its HomeStyle Energy loan.  

https://www.fanniemae.com/content/fact_sheet/homestyle-energy-product-matrix.pdf

In many solar markets you'll find solar PPAs (Power Purchase Agreements) and solar Lease programs. It's in these type of 3rd party ownership solar programs where, while there is still a cost savings benefit to the buyer, appraisal value is arguable and divided among appraisers. 

Obviously, for real estate investing, solar purchase option is the only way to go. 

Also to add to that, for investors with rental property, there are energy monitoring and tenant billing services that allow an investor to put solar on their rental and MAKE money by selling energy to their tenant. In areas with high retail cost of energy, this strategy adds a lot of cashflow value to rental properties as well as marketability (lower energy rate for tenants). 

@Kristina Heimstaedt 

Rather than increasing the rent you could monitor the solar production and bill the tenant for the kWhs produced and provided. In most areas, you should be able to charge them at a rate that is lower than the utility company and yet is cashflow positive to you (assuming you are financing the solar purchase). This would serve the same purpose as the tenant paying off the solar asset for you. There is a service based out of CA that does this type of solar monitoring and tenant billing on your behalf for this exact scenario. Feel free to message me, I can send over info on it.