New financing program helps California apartment builders comply with new solar mandate through solar carports
Commercial solar financing provider SDC Energy has launched its Powering Title 24 Program with partners Baja Construction and Grid Technologies. With California being the first state in the country to require solar energy on all new residential properties under three stories by 2020, the Powering Title 24 program combines solar carports, virtual net-metering software and tax-enabled financing to help apartment builders and owners convert Title 24 mandates into long-term benefits.
“Powering Title 24 turns compliance into profits,” says Charles Schaffer, CEO of SDC Energy. “Solar carports generate tax credits and accelerated depreciation benefits that offset all of their construction costs. Working with our partners, we can build PV-powered carports essentially for free while creating a new revenue stream for multi-tenant property owners.”
Multifamily properties will see even more changes in 2019. AB 802, which will take effect in June, requires all California multi-family building owners to disclose their properties’ energy usage to reveal their level of Title 24 compliance. Leveraging solar energy will be a critical component in compliance strategies.
Powering Title 24 is a trio of services that leverages parking structures into solar generating carports, combining intelligent software that monitors the electricity produced and integrates billing systems to enable the sale of solar power to tenants. The linchpin of the program is custom financing that provides secure, flexible terms for solar installers and their customers while enabling private investors to cut their tax bills with PV incentives.
“California’s solar mandate shines new light on the value of building green communities,” says Brandon Morford, CEO of Baja Construction. “Because we already build 70% of all multi-family carports in California and lead carport manufacturing in the solar industry, we can quickly supply builders with a very cost-effective solution.”
After installation, Powering Title 24 makes sure that the project’s electricity is distributed efficiently. “Our energy monitoring system leverages ‘virtual’ net metering to create a passive revenue stream for building owners,” explains Dover Janis, co-founder and CEO of Grid Technologies. “Owners gain from the sale of solar while tenants save 5% to 10% on their utility bills. Plus, adding solar boosts property values up to two and a half times the cost of the installation.”
A survey of 2,800 apartment residents — three in five under the age of 34 — found that 84% of tenants say that living in an eco-friendly building is important to them, and nearly two-thirds would pay more to live in a green community. Powering Title 24’s PV carports create energy-efficient properties that command higher rents and longer leases while reducing construction costs.
News item from SDC Energy