Turn New York’s Sustainability Laws (LL97, LL92, LL94) into profit

New York City has implemented several sustainability laws targeting large commercial real estate to combat climate change and improve energy efficiency. Among these is Local Law 97 (LL97), part of the Climate Mobilization Act, which imposes strict emissions limits on buildings larger than 25,000 square feet. While compliance might seem like a costly burden, it can actually present a financial opportunity — especially when utilizing Energy311’s solar billing service.

How Solar Billing Turns Compliance into Profit

Energy311 helps property owners to turn regulatory compliance into a profitable venture by selling onsite-generated electricity (e.g., from solar panels) to tenants at the same rate as the local utility. Here’s how:

1. Measure Usage: Use existing local utility meters, revenue-grade submeters, or solar inverters to track energy consumption. No additional equipment is needed.
2. Generate Custom Bills: With Energy311, you can generate customized bills that mirror local utility statements but feature your company’s branding. See an example here.
3. Apply Local Utility Rates: Charge tenants the same rate they would pay to their local utility, ensuring regulatory compliance while creating your own energy marketplace.

Submetering and Compliance

New York’s submetering regulations allow landlords to sell electricity to tenants, but it must be done in compliance with the New York State Public Service Commission (PSC). The rates charged cannot exceed what tenants would have paid to a utility like Con Edison.

With Energy311, you get “to-the-penny” accurate bills aligned with local utility rates, ensuring compliance with PSC regulations while maximizing profit.

Community Distributed Generation (CDG)

Property owners can also benefit from Community Distributed Generation (CDG) programs, commonly known as community solar. By installing solar panels, you can allocate energy credits to tenants, reducing their utility bills and generating revenue for yourself. Energy311 ensures seamless billing, allowing you to manage CDG revenue efficiently.

Renewable Energy Certificates (RECs)

Generating solar power enables you to earn Renewable Energy Certificates (RECs), which represent the environmental benefits of clean energy. These can be sold either to tenants or on the open market, providing an additional income stream.

Compliance with Local Laws (LL97, LL92, etc.)

Laws like LL97, LL92, and LL94 require building owners to reduce emissions and install solar panels or green roofs, opening up opportunities to sell electricity to tenants. Energy311 helps you profit from these installations while ensuring compliance with the regulations.

Additionally, Energy311 assists with energy reporting requirements under Local Law 84, which mandates annual energy and water usage reporting for larger buildings.

Tax Incentives and Financing

New York offers numerous incentives to offset the cost of solar installations, including tax credits, rebates, and the NY-Sun program. These financial incentives can further boost the profitability of selling solar power to tenants.

Overview of Key Sustainability Laws Impacting Commercial Real Estate

• Local Law 97 (LL97) — Greenhouse Gas Emissions Limits:
  Applies to buildings over 25,000 square feet, with fines of $268 per ton of CO2 emissions over the threshold.
• Local Law 84 — Benchmarking Energy Usage:
  Requires annual reporting of energy and water consumption for buildings over 50,000 square feet.
• Local Law 88 — Lighting and Submetering:
  Mandates energy-efficient lighting and submetering for tenant spaces in buildings over 25,000 square feet.
• Local Law 33 — Energy Efficiency Grades:
  Requires large buildings to publicly display an energy efficiency grade, based on their Energy Star scores.
• Local Law 92 and 94 — Green Roof and Solar Panel Requirements:
  Requires the installation of solar panels or green roofs on new buildings or those undergoing major roof renovations.

Conclusion: Turn Compliance into Opportunity

New York City’s sustainability laws may seem challenging, but they also provide opportunities for property owners to generate revenue. By leveraging solar installations, energy efficiency improvements, and Energy311’s billing services, property owners can not only comply with regulations but also create profitable energy solutions.

Interested in learning more? Check out Energy311’s Blog!