This concern has been recurrently in the news throughout the year. You know well the reality that home building costs have risen dramatically since the pandemic.
Construction costs are rising due to supply chain issues, tariffs, and labour shortages. Fannie Mae provided a commentary that showed that the cost to build a 4–7-story apartment building has increased by 8.3% over 2020. Experts expect that multifamily will continue to grow despite rising expenditures. This is because renter demand is strong.
Multifamily builders are not likely to find any cost relief. How can multifamily developers maximize their profit? Adding new assets that generate more income is one way to offset rising costs. A well-designed, on-site solar system can generate new income for many decades.
Virtual net energy measurement (VNEM) can make long-term solar gains. VNEM converts solar energy from multifamily rental properties into utility bill credits allocated to each meter. This allows builders to increase their net operating income and share the savings with tenants. This saves money on utility costs and is a great benefit for builders. It also makes it attractive for renters who want to live sustainably. A SunPower energy consultant can explain VNEM in detail.
SunPower can help you determine which incentive programs are available for your specific location and the long-term cost savings solar energy offers. Three new incentive programs are now available for multifamily builders in California’s Golden State.
BUILD Program
The Building Initiative for Low-Emissions Development is a California Energy Commission program that offers incentives to builders for low-income, all-electric residential buildings that lower harmful carbon emissions. BUILD is a program that promotes renewable energy in affordable housing developments. Each applicant can receive a $2 million award and a kicker incentive to invest in other clean energy technologies like solar storage.
Builders may apply by submitting a complete BUILD Incentive Reservation Application package.
Energy-Smart Homes Program
California Public Utilities Commission’s Energy-Smart Homes Program provides incentives for all-electric home construction. There are $12 million in incentives available to builders every year, with an option for extension. It can also be combined with programs such as BUILD. Applications are being accepted for this program at the moment.
California Electric Homes Program
The California Electric Homes Program is currently in development. It was established to encourage the construction of electric buildings and storage. The first phase of the program will see $58 million allocated. The program’s overarching guidelines will be released within the month. A public comment period is scheduled for late 2022 or early twenty23. SunPower is closely working with this incentive program and will keep builders informed about its progress.
Compliance with California’s Title 24 Energy Code is required for many of these incentive programs. This mandate requires all three stories or less residential construction must include solar panels. SunPower’s multifamily construction specialists work with builders and architects to ensure that their units have the best solar technology. They also help them avoid costly pitfalls. SunPower’s mission is to help builders save money.
SunPower has installed over 80,000 home solar systems, and it is easy to see why the nation’s top homebuilders trust SunPower. Our whole-home renewable energy solutions, including solar storage and EV chargers, are industry leaders. We also offer the best-in-class solar panels that are durable and efficient. Learn more about maximizing your solar energy investment.