RENEWABLES Once efficiency measures reduce baseline consumption, renewable energy can further lower costs. Affordable Housing properties have two major renewable options: COMMUNITY SOLAR. Community solar programs allow property owners and tenants to subscribe virtually to a shared solar farm located offsite. Participants receive community solar credits applied directly to their utility bills, typically at a 5–20% discount. Key advantages include: no upfront cost to enroll, no maintenace responsibilities, and tenants can subscribe to their own electric bills if paid separately.
MORE THAN $800,000 IN INCREASED VALUE WHEN CAPITALIZED. ▷ PAYBACK PERIODS OF 12–24 MONTHS MEAN PROJECTS QUICKLY MOVE FROM COST CENTERS TO PROFIT DRIVERS. ▷ LAYERING IN RENEWABLES LIKE COMMUNITY SOLAR CAN GENERATE ADDITIONAL SAVINGS OF 5–20% ON CREDITS. These improvements strengthen cash flow, increase property value, and enhance exit strategies for investors. ESG Benefits: A Secondary but Significant Win Beyond financial returns, efficiency and renewable strategies align with Environmental, Social, and Governance (ESG) goals. Investors increasingly face pressure from capital partners, regulators, and tenants to demonstrate sustainability. Energy efficiency provides a tangible, measurable way to reduce carbon footprints while improving affordability for residents. This dual impact (financial performance and social responsibility) makes efficiency particularly powerful in Affordable Housing, where improving quality of life for tenants is part of the investment mandate. A ROADMAP FOR INVESTORS The path to unlocking energy savings doesn’t have to be complicated. A phased approach works best: 1. CONDUCT AN ENERGY AUDIT TO
For Affordable Housing investors, where access to capital can be limited, these incentives transform efficiency projects from “nice to have” upgrades into high-return investments. BEYOND USAGE While reducing energy consumption is critical, many properties also overspend simply because of billing errors or unfavorable supply contracts. Tackling these areas can unlock savings without a single equipment upgrade. UTILITY INVOICE AUDITS. Utility bills are complex, and errors are more common than most realize. A utility invoice audit reviews past and ongoing bills to identify overcharges, misapplied tariffs, or metering mistakes. Corrections can result in refunds or credits, sometimes for years’ worth of overpayments. For affordable housing, these audits provide “found money” that directly boosts NOI. Beyond recovering costs, ongoing monitoring helps ensure future bills remain accurate. POWER PROCUREMENT. In deregulated markets, properties don’t have to accept default utility supply rates. Power procurement allows owners to competitively source electricity or natural gas from multiple providers. The benefits include lower per-unit costs, protection against market volatility, and budget certainty through structured contracts. When combined with efficiency upgrades, procurement ensures owners aren’t just using less energy; they’re also paying less for every unit consumed. Together, invoice audits and procurement strategies can add an extra 5–10% in utility savings. That’s incremental NOI that multiplies property value while de-risking future operating expenses.
Community solar is one of the most accessible pathways into
renewable energy, particularly for Affordable Housing where capital budgets may be constrained. ON-SITE SOLAR. For properties with adequate rooftop or land space, installing solar panels provides long- term stability against rising utility rates. While on-site solar requires more upfront investment and planning, it can significantly offset remaining energy demand after efficiency measures are implemented. Panels also provide visible evidence of sustainability, which may improve tenant attraction and investor perception. REAL-WORLD VALUE CREATION The combination of efficiency and renewable strategies delivers measurable results: ▷ A PROPERTY SAVING $50,000 ANNUALLY IN UTILITY EXPENSES COULD SEE
UNDERSTAND BASELINE USAGE AND UNCOVER INEFFICIENCIES.
2. PRIORITIZE HVAC OPTIMIZATION, GIVEN ITS OUTSIZED IMPACT ON UTILITY COSTS. 3. IMPLEMENT LED RETROFITS AND
PURSUE OTHER LOW-HANGING FRUIT WITH QUICK PAYBACKS.
30 | think realty magazine :: december - january 2026
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