Apartment buildings and condo homeowners' associations (HOA's) are able to install solar electric systems to reduce common area use, such as outdoor and garage lighting. Environmental and financial benefits are realized by the building owner/HOA. If building owners and renters would like to work together to utilize solar, "virtual net metering," may be the answer.
Large properties with large hot water needs are encouraged to explore solar thermal water systems. Everything you need to get started is here.
The solar installed at this multi-family complex on Olympic Blvd. offsets common area electricity loads.
Virtual Net Metering
Virtual Net Metering (VNEM) is a billing arrangement offered by California's three major investor-owned utilities (IOUs) allowing for a property to offset both common area and tenant load(s) with a common solar electric system.
VNEM is available under two tariffs, each applicable to a specific market segment.
- VNM: Virtual net metering for low-income buildings
- NEM-V: Virtual net metering for general market buildings, limited to participating utility accounts connected to a single service delivery point*
The City of Santa Monica has partnered with the Center for Sustainable Energy in a pilot study to engage local solar contractors and interested multitenant properties in pursuing NEM-V.
The Center for Sustainable Energy has created resources to guide property owners through the process. Learn more.
- Tax Credit: There is a 30% Federal Tax Credit for solar energy systems (available for both photovoltaics and solar water heating systems). Work with your solar installer and tax advisor to determine if you are eligible. More info here.
- Solar Water Heating Rebates: Eligible solar domestic hot water systems can receive a rebate from SoCal Gas for $25.00 per therm saved, up to $800,000. More info at the SoCalGas website: www.solarwaterheating101.com
- New Residential Construction Rebate (New Solar Homes Partnership or NSHP): New residential construction, including total building renovations, common areas of housing developments, and qualifying mixed-use projects that commit to installing a solar PV system in conjunction with construction are potentially eligible for a financial incentive. Rebates are determined based on the expected performance of the solar system to encourage high-quality installations.
The incentive structure is divided into three incentive levels based on the energy efficiency of the home. The lowest incentive, "Code -Compliant," is available for homes that meet the 2013 Title 24 Building Energy Efficiency Standards (Title 24 Standards). The next highest incentive is "Tier 1," which is for buildings that exceed the energy efficiency requirements of California's current Title 24 Standards by at least 15%. The highest incentive, "Tier 2," is for buildings that exceed overall Title 24 Standards by at least 30% and exceed space cooling efficiency by the same margin. For example, the current incentive level for market-rate housing, step 8, provides between 50 cents and $1.25 per watt incentive, based on the energy efficiency of the project.
For NSHP FAQ, click here.
For all details on the New Solar Homes Partnership, including eligibility requirements and how to apply, see the Guidebook here: NSHP Guidebook Ninth Edition
Financing Your Clean Energy System
There are many ways to help finance the installation of a solar or renewable energy system for your home. Buying, leasing and Power Purchasing Agreements (PPA) are the three most popular choices. See table for financing options.
Estimate Solar Potential for Your Site
Look up your address at the LA County Solar Map. If you think there is an error in the aieral image, call us for a personal asssessment. The County SolarMap also has resources to help size your system and estimate annual savings.
System sizing is based on your electricity consumption. There is no financial incentive to oversize! Divide your annual kWh usage by 1,600 to estimate the number of kW needed to offset your annual consumption.
Find a Contractor
If you're like most residents we talk to, buying solar is something brand new!
That's why Solar Santa Monica decided to go to the effort to find solar contractors who:
- meet city license and insurance requirements
- make personal visits before issuing a proposal
- carry the state solar rebate
- offer options for web monitoring and maintenance contracts
- offer standard warranties
- act in a professional manner
- have references available
- report on Santa Monica installations completed
We have solar electricity (photovoltaic), solar hot water (solar thermal), and solar pool heating experts
on our list. These contractors were screened and selected after a memorandum of understanding was agreed upon.
Our local contractors offer free site-visits. Call three so you have experience, bids, equipment, and
services to compare. Find a Contractor.