The announcement of Tesla’s solar products caught the media off guard, instantly capturing our attention with their draw-dropping beauty and simplicity. We held a collective breath—how much are these going to cost, exactly? Are they scalable? Endless Energy The sun is a free and relatively endless source of energy. The Tesla website reminds us that, “The sun provides more than enough energy in just one hour to supply our planet’s energy needs for an entire year.” Harnessing that power simply makes sense. To help consumers utilize that power, Tesla finalized the acquisition of SolarCity for roughly $2.6 billion in November 2016. Together, the entities aim to  “provide customers with full-stack solutions for owning their own energy production, storage and consumption.” To date, that stack includes solar tiles, Powerwalls and Powerpacks. Solar Tiles Tesla solar tiles create stunning, energy efficient roofs that are also affordable. Fortune estimates the solar cell costs to be $0.40 per watt, comparable to commodity solar panels. The difference comes in their efficiency: Tesla’s solar tiles are nearly 15 percent more efficient. The solar roofs can also be less expensive. Tesla CEO Elon Musk states that he aimed for an installed cost that is less than the cost of a conventional roof and the electricity bill for a home. Some of the cost savings come in the form of shipping. Tesla’s tiles are one-fifth the weight of similar products. That makes the lightweight and ultra durable material easier and less expensive to transport. They are also harder to break than asphalt shingles or terra cotta tiles, reducing the cost of wasted materials. The durable tiles will not need to be replaced or repaired as often as conventional roofing or competitors’ solar panels. Where traditional roofing shattered under impact, the Tesla glass...

Editor’s note: The following piece and accompanying graphics are re-published with permission from Home Energy Magazine. Behavioral recommendations, or tips, are an integral piece of many energy efficiency programs, ranging from marketing materials (e.g., brochures) to in-home audits, to Home and Business Energy Reports (such as the report shown below). Though information is known to be a critical component of effective interventions, it is important to consider human motivations and needs for this to be effective. This article synthesizes findings from a series of empirical research conducted by See Change Institute and Yardi (formerly Pulse) Energy’s Business Energy Report (BER) program[1]. By breaking apart the tips from the energy report (sample below) and breaking down the components of those tips even further, we were able to test the impact of variations of different components of tips, with the goal of optimizing messaging to incite pro-efficiency behavior in BER recipients[2]. In synthesizing these findings, we identified five key insights on tip content, form, structure, and imaging, or “Tips for Tips”.     1. Put People in Pictures First, we tested the impact of having people in images above the tips – one tip had a picture of equipment, the other included someone actually engaging in the behavior being promoted. We found that tips with an image of a person engaging in the action were rated significantly higher in terms of behavioral intention (that is, how much someone self­-reports intention to complete the recommended action).We recommend considering images that do include people, especially people engaging in the recommended action. 2. Tell People What to Do Next, we tested the difference between a “subject title” (e.g., “Ceiling Fans”) and an “action title” (e.g.,”Use fans more & A/C less”). We found that using an action title led people...

After signing its first agreement to purchase all the electricity from a 114-megawatt wind farm in Iowa in 2010, Google set the target to be powered 100 percent by renewable energy only two years later. According to one of the company’s latest blog posts on the initiative, the said target will be reached in 2017, following a complex process involving many power purchase agreements. “To reach this goal we’ll be directly buying enough wind and solar electricity annually to account for every unit of electricity our operations consume, globally. And we’re focusing on creating new energy from renewable sources, so we only buy from projects that are funded by our purchases,” said Urs Urs Hölzle, Google’s senior VP of technical infrastructure. Technology companies have been criticized for the carbon footprint of their operations, which have expanded so fast they now account for about 2 percent of global greenhouse emissions, rivaling the aviation industry. The internet giant is already the world’s biggest corporate buyer of renewable electricity (Amazon is a distant second), last year buying 44 percent of its power from wind and solar farms. The majority of the green power comes from windfarms in the U.S., but also from projects around the world including sites in Sweden, the Netherlands and Chile. In order to get here, Google took part in a number of large-scale deals with renewable producers, guaranteeing to buy the energy they make with their wind turbines and solar cells. Those guarantees help wind companies obtain bank financing to build more turbines. One of the most attractive, cost-efficient features of wind power is that, unlike carbon-based power, wind supply prices don’t fluctuate, thus allowing Google to plan better. Moreover, the more renewable energy it purchases, the cheaper those sources get—in Chile, Google said,...

Editor’s note: This piece originally appeared in the fall issue of NAREIM Dialogues. Electrification is perhaps the greatest technological advancement of the 20th century.  The electric power grid, the system that delivers electrification, is considered by many to be the largest and most successful machine ever built.  But it may be about to die. The power grid “machine” is an interconnected system of long distance transmission lines, local distribution systems, transformers, substations, generating power plants, and the computers and control systems that manage it.  In the United States, it delivers $400 billion in electricity annually over 7 million miles of power lines and through the efforts of 3,200 utility companies.  The infrastructure in the system is valued at over $850 billion.  Uptime is an astonishingly high 99.97% (I certainly wish my laptop could approach that level of reliability) and growth in the system is delivered relatively reliably by simply calling your utility.  All this is delivered at price that is slightly below where it was in 1960 in real terms. This is an incredible success story; it seems like there is little here to concern real estate investors and owners…right? If only it were so simple.  We have entered a period of incredibly rapid change in energy technologies, and the future of the utilities that deliver power to our buildings, and even the future of the electric grid itself, is in considerable flux.  The forces threatening to disrupt the power grid include distributed solar systems, fuel cells, demand response technologies, battery storage, energy efficiency, electric vehicles, and various micro grid technologies.  We can sum these up with the phrase: be your own power plant.  Or to be cheeky, “adios, utility company.”  Even if you think your particular investments, assets, buildings or properties won’t mess...

By harnessing every footstep, Pavegen floor tiles turn walkways into energy sources and help cities convert pedestrians into power. What if that “spring in your step” could be converted to energy? Imagine your footsteps providing enough power to light the path you’re walking on, or even contribute to the overall load at the supermarket you cruise or the airport you rush through to catch a flight. For Pavegen CEO and Founder Laurence Kemball-Cook, every footfall provides an opportunity. “My idea was a floor tile that would convert the kinetic energy from a footstep into electricity,” Kemball-Scott explains in an interview with The Guardian. “Every time someone steps on the tile, they generate seven watts of power. The energy is stored within batteries, and then used to power lighting when it’s needed. It’s an off-grid power source for cities.” Kinetic Energy Recovery With its triangular design, the Pavegen tile captures the downward force applied by each step across its surface. Outfitted with flywheels in each corner, one tread applies enough pressure to spin the tile’s tiny turbines. Electromagnetic induction transforms this kinetic energy into electrical energy, which can then be stored or used. Describing the tiles to Bloomberg News as “a viable new type of off-grid energy technology,” Kemball-Cook strongly believes in the product’s potential for “a low-carbon contribution wherever there is high footfall, regardless of the weather.” Durable Design Though Kemball-Cook’s prototype met with lukewarm support – Al Gore and Shell were a few early advocates – improvements in durability and generation potential have increased interest in the Pavegen tiles. Kemball-Cook improved on the power generation of the initial concept by adding additional flywheels and a triangular design. The latest version of Pavegen is also stronger and more reliable. “The floor is one of...

Fannie Mae and FHA have made green multifamily housing financing more attainable. Sustainable features will now be a deciding factor in underwriting and interest rate calculations. Three new programs offer rate incentives for new construction and renovations. The financing options come on the heels of several reports that highlight the mutually beneficial relationship between sustainability and multifamily housing. Eco-conscious multifamily properties receive lower utility bills and fewer defaults. Energy saving tools, such as Energy Solutions, can cut costs by identifying leaks, recovering overage costs, and automating both energy management and utility billing. Convergent billing alone improves utility cost collection by 20 percent. Additionally, lower utility bills are believed to attract more stable tenants. By reducing utility costs, residents will be better able to pay rent and less likely to default. HUD Secretary Julián Castro reports that a quarter of renters spend more than 50 percent of their income on housing. The recommended allocation is 30 percent or less. Energy cost savings and decreased defaults make green properties more profitable for lenders. In order to receive a lower interest rate with Fannie Mae, properties must cite a 20 percent savings on energy or water costs. Such properties can receive up to 40 basis points off of standard pricing, reports CBRE. Especially for multifamily affordable housing, Fannie Mae’s Green Preservation Plus (formerly known as Green Refinance Plus) offers 4-5 percent greater loan proceeds. The additional funds may be used to pay for energy efficient retrofits and upgrades. There is no limit or cap on loan sums, though loans over $50 million will require HUD consent. Qualifying properties must be at least a decade old. Energy- and water-saving improvements must equal at least 5 percent of the original mortgage loan amount. Borrowers are also required to track...

Blessed with an average of 266 sunny days per year, it’s no surprise San Diego currently generates 189 megawatts of solar power. Though it boasts the second highest solar wattage in the country, the city doesn’t plan to rest on its laurels. Instead, this southern California metropolis of over 1 million has set its sights on something grander: to be largest U.S. city completely powered by renewable energy. Known as the “birthplace of California,” this trans-border urban outpost sits at the center of U.S. innovation, playing host to military, biotechnology and medical research and manufacturing. Over the years, San Diego’s commitment to sustainability and environmentally focused city planning has resulted in an extensive infrastructure renaissance and citywide green initiatives. With an eye on reducing carbon emissions and mitigating the effects of global warming, a bipartisan coalition led by Republican Mayor Kevin Faulconer unanimously approved the city’s Climate Action Plan last December. The goal is to cut greenhouse gas emissions and shift to 100% renewable energy sources by 2035. The Climate Action Plan also includes a goal of 90% solid waste recycling along with significant funding for public transportation. “Today, we are faced with an issue that affects us all. Our city’s responsibility is to ensure a clean, sustainable San Diego for generations to come,” Faulconer writes in his introduction to the Climate Action Plan. “San Diegans from different backgrounds are coming together to proactively address environmental concerns, strengthen our economy and improve our quality of life.” The Climate Action Plan includes practical policies designed to strike a balance between environmental protection and economic opportunity. Those strategies include improved water resource management, targeted public information campaigns, and green jobs incentives. “We have an opportunity to improve the lives of every San Diegan,” concludes Faulconer. “This...

There is really only one renewable energy source that can power the whole planet —solar energy. The sun’s energy can power the earth many times over. We’re all familiar with solar technology’s limitless potential, but have yet to actualize its true capability. One of the main hurdles with solar technology is where to put it, as the places where we most need power are lacking space for the big, heavy panels. Silicon Valley startup Ubiquitous Energy, a company spun off by researchers at Massachusetts Institute of Technology and Michigan State University, believes they’ve found the solution—a new type of technology that could span from industrial applications to consumer devices and handheld gadgets—cell phones and tablets that never run out of battery life. Sounds like fantasy, doesn’t it? Until now, solar cells have been only partially transparent and usually a bit tinted, but the startup’s transparent solar cells are so clear that they’re practically indistinguishable from normal panes of glass. Transparent solar is something taught in elementary school: the sun transmits energy in the form of invisible ultraviolet and infrared light, as well as visible light. A solar cell that is engineered to only capture light from the invisible ends of the spectrum, will allow all other light to pass through—thus, it will appear transparent. “It opens a lot of area to deploy solar energy in a non-intrusive way,” Richard Lunt, co-founder of Ubiquitous Energy, said in an interview with Michigan State’s Today blog. “It can be used on tall buildings with lots of windows or any kind of mobile device that demands high aesthetic quality like a phone or e-reader. Ultimately we want to make solar harvesting surfaces that you do not even know are there.” The secret to creating such material is organic chemistry....

The Clean Energy Group recently completed the report, Resilience for Free: How Solar + Storage Could Protect Multifamily Affordable Housing from Power Outages at Little or No Net Cost. The group’s research unveils just how easy and cost-effective it can be to furnish affordable housing with solar energy. The research and new technologies could be a game changer for the industry. The report examines data for multifamily affordable housing communities in three major metropolitan areas: New York, Washington, D.C., and Chicago. The results show that solar + storage can be installed and implemented with zero net cost over the lifetime of the project. Zero. Returns are reaped in a matter of years. Solar has finally become a cost-effective competitor for conventional power sources. The crowning features of solar + storage are especially important in affordable housing. Low-income residents have the fewest resources to pay for the rising costs of conventional energy. Prices for sustainable solar energy have actually decreased, making it more accessible than ever before. Low-income areas are the most vulnerable populations during crisis, particularly housing for seniors and the disabled. Those populations are the least equipped to recover from disaster as they lack the resources and access needed to bounce back quickly. It is important to keep these communities functional until surrounding infrastructure and services resume. Storage and backup batteries have drastically improved in recent years, providing power for affordable housing communities in emergency situations. Such features position sustainable solar as a viable alternative to conventional energy in terms of cost, accessibility and reliability. “There is now no economic or technical excuse to leave low-income and vulnerable people at risk,” Resilience for Free concludes. Precisely how solar + storage works in an affordable housing community will vary by project type. In the...

If you haven’t prioritized the energy efficiency of your commercial properties, you’ve already fallen behind the curve. Corporate mandates requiring the lease of green buildings have nearly tripled. Prospects are willing—and now able—to pay a premium for energy efficient spaces. The Institute of Building Efficiency issued a survey to 687 VPs, facilities managers, owners and C-level personnel across the nation. Their buildings range from under 50,000 square feet to beyond 500,000 square feet. The results of the report revealed that energy efficiency has become a top priority and growing investment for building owners. When asked about their views on energy efficiency, 46 percent of survey respondents said they paid “a lot more” attention to energy efficiency in the previous 12 months than they had in prior years. Of the executives surveyed, 68 percent plan on increasing their investments in efficiency and renewables. In the past, third-party rebates and incentives furnished the bulk of financing for commercial efficiency upgrades. Yet with such resources dwindling, owners are earmarking monies within their own budgets. Financing called “energy- or climate-specific set-asides within the capital budget” nearly doubled last year to 30 percent from 17 percent in 2012. Meanwhile, energy service agreements increased to 32 percent from 21 percent in 2012/2013. The benefits of energy efficiency have proven their worth. Executives, managers, and tenants choose energy efficient buildings over conventional buildings. This year, 36 percent of respondents expressed that they would be willing to pay top dollar for an efficient space. This is more than double the 15 percent of participants who reported that they would pay a premium in 2013. Many are willing to pay the premium because efficient spaces are a mounting requirement by leadership. 10 percent of respondents reported that corporate policy mandates the lease of...

Evidence of climate change is all around us – for example, the amount of Americans with asthma has more than doubled in the past three decades, and rates are alarmingly high among lower-income people, who are more likely to live near a power plant. It’s no wonder that people are getting sicker when, as a country, we emit more than 5.5 billion tons of carbon dioxide (CO2) a year. As of August 2015, the Obama administration released a proposal to tackle this tremendous issue in the form of the Clean Power Plan (CPP).  The plan sets the country’s first-ever national standards limiting carbon pollution from power plants, which were previously unregulated. The CPP aims to reduce carbon dioxide emissions by 32 percent by 2030 by establishing standards, but allowing individual states the flexibility to choose how this should be accomplished. With such a daunting goal, it can be confusing to know where to start when considering alternative energy for your properties. We caught up with Jennifer Burke, an energy consultant at Yardi subsidiary MCEnergy, to find out what this new plan means for the commercial real estate industry. How will the CPP affect commercial real estate? JB: The CPP is intended to reduce carbon emissions by 32 percent for U.S. power plants – below 2005 levels.  Coal fired power plants are the greatest emitters of carbon.  Therefore, the CPP will have the greatest impact to electricity pricing in geographic areas where coal is more dominant in the generation of electricity.  The PJM ISO, the largest Independent System Operator (ISO) in the U.S., which encompasses 13 states in the mid-Atlantic region, has a relatively high concentration of coal fired power plants and will be impacted the most.  As more coal plants are retired, there may...

Energy management software from Yardi® promotes efficiency and savings following the company’s acquisition of energy services provider MCEnergy Inc. Energy management services from MCEnergy include contract negotiations with leading electricity, natural gas, fuel oil and green energy suppliers to provide reliable energy at competitive prices. Turnkey submetering solutions and energy and environmental tracking software give property managers access to energy, environmental and sustainability data and information. MCEnergy’s product offerings complement existing Yardi solutions for utility billing, energy management, submeter data administration and intelligent HVAC energy optimization software. “MCEnergy has been providing market insights and energy management services to Class A commercial and industrial clients for nearly 20 years. Teaming with Yardi is a great opportunity to strengthen and extend our offerings on a national level and provide these services to the residential as well as commercial real estate communities. We are thrilled to join Yardi,” said Margaret M. Carey, president of MCEnergy. “Yardi continues to focus on advancing our clients’ energy-related objectives by providing options to actively manage consumption, cut costs and support environmental initiatives within a single full-business software platform. Acquiring MCEnergy is the latest step toward that goal, and we look forward to welcoming their energy, real estate and software expertise to Yardi,” said Gordon Morrell, executive vice president of Yardi. About MCEnergy Inc. MCEnergy, based in Valhalla, N.Y., is a world-class energy information and procurement company. MCEnergy helps clients secure energy at competitive prices, meter and track energy usage, calculate carbon footprints, institute green initiatives, manage data exporting for clients participating in the EPA EnergyStar Program and maximize recovery of utility revenue. The company advises hundreds of companies, from Fortune 500 to medium and small energy users. In 2005, MCEnergy was awarded the Women-Owned Business Enterprise (WBE) certification by New York...

Sub-metering has been known to help multifamily managers cut costs. Now, as part of Fannie Mae’s Green Initiative, the simple technology can help both multifamily developers and existing properties secure loans. Fannie Mae recently issued the report “Transforming Multifamily Housing: Fannie Mae’s Green Initiative and Energy Star for Multifamily,” which quantifies the benefits of energy efficiency on a blend of 1,163 multifamily properties. The data will be used to create standards for the Green Mortgage Backed Securities. The report reveals that the least efficient properties consumed at least three times more energy and six times more water per square foot than the most efficient properties. In addition to conserving potable water, preventing brownouts, and promoting cleaner air—all of which benefit the nation at large–green initiatives for multifamily can cut costs for property managers. It became clear that the benefits of sustainable development and upgrades for multifamily were worth Fannie Mae’s investment. The Transforming Multifamily Housing data will be used to create standards for the EPA’s Energy Star Score for multifamily as well as the Fannie Mae Green Mortgage Backed Securities. Properties that meet certain sustainability criteria will be eligible for a portion of $130 million in financing through Fannie Mae. Existing affordable properties will be eligible for Green Preservation Plus loans, which give borrowers access to as much as 85 percent of their property’s value as long as borrowers implement measures to reduce energy and water consumption. To meet required criteria, managers can take advantage of a variety of resource-saving options. Common sustainable upgrades can save a property 15 percent or more on energy and water costs each year. One approach that has proven its value for senior, affordable, and convention multifamily properties is sub- metering. Properties with sub-metered utilities can drastically reduce costs;...

The demand for sustainable retail properties is growing, demonstrated by an influx in applications at accreditation organizations, top tier rents, and high trade rates. According to Lux Research, green building is now a $260 billion market with retail as one of its most vigorous verticals. Green building certification programs such as LEED for Retail have witnessed an increase in applications. The “LEED in Motion: Retail” report states that more than 8,000 retailers worldwide participate in LEED and more than 1.2 million people experience a LEED-certified retail space on a daily basis. Participating companies include Target, Kohls, Bank of America, and Starbucks, which recently celebrated its 500th LEED-certified store. The transition towards greener retail spaces corresponds with reports that retailers with LEED Gold certification or greater outperform their conventional neighbors. Studies by Nils Kok, Ph.D., executive director of the Global Real Estate Sustainability Benchmark (GRESB) suggests that sustainable office buildings trade at a 13 percent premium over conventional buildings. Green office structures also receive rental rates that are at least three percent higher than their conventional counterparts. “We found that LEED-certified and Energy Star-rated office buildings financially outperform their non-green peers in terms of rental rates and occupancy rates,” says Kok. For new developments, state and federal programs offer subsidies and other incentives to green retailers, helping to raise such projects’ internal rates of return by as much as six percent in less than 15 years. While there are certainly owners who pay top dollar for green retail spaces because they prioritize the environment, financial and social pressure are contributing factors behind the growth in sustainable retail popularity. Publicly-traded REITs face pressure from investors to achieve optimal energy efficiency in order to reduce operating costs and increase returns. Pressures come on a larger scale as well. An...

If you ever played with electric slot cars as a kid, this idea may resonate. An inventive couple has reimagined the world’s roads as the source of solar/electric power for vehicles. Think the idea is out there?  Read on to find out what they’ve envisioned. With global warming in mind, Scott Brusaw (right, driving a tractor on a prototype parking lot built using the technology) and his wife Julie started working on the idea of replacing petroleum-based asphalt and concrete surfaces with a material that would capture solar energy. The hope was to find a way to reduce and eliminate coal-fired power plants.  The result of their efforts is the Solar Roadways project. The focus was on building solar panels that could be walked upon and driven on, essentially producing solar-powered cases containing photovoltaic cells, with an exterior strong enough to protect the sensitive electronics inside. These unique panes would also store the collected solar energy. They’d be used to re-pave the roads, or any surface that soaks in the sun all day long,  and would need to have some fantastic features: –          to withstand the weight of an 18-wheeler; –          to melt ice and snow; –          to capture and send the extra energy to the cities. The answer? Perhaps surprisingly: Glass. Tempered and laminated glass with textured surface to avoid sliding. Furthermore, these cases would have LEDs to illuminate road signage and to advice the driver to slow down on the portions with increased risks, as well as heating elements to withstand snow and ice. Solar Roadways | Michéle Ohayon from Focus Forward Films on Vimeo. This might seem unrealistic, but the idea has been taken seriously. It received awards and nominations from GE, the World Technology Award, Google and the IEEE Ace...

Investing in earth-friendly energy solutions is an ongoing trend in real estate, across all market sectors.  Political and ethical reasons for implementing green building and utility systems notwithstanding, investors and owners of real property assets are often motivated to use new technology for monitoring and controlling energy use for an even simpler purpose: to cut costs. Government-supported initiatives, like Ontario’s saveONenergy for business, are just one of many motivators. Commercial owners and managers across North America are looking for creative ways to increase ROI and add investment value to existing properties. Energy retrofit projects are one pragmatic and earth-friendly way to achieve added value. In some cases, incentive funding can cover up to 25-30 percent of the project cost. But given the cost of implementing a new system or choosing a new contractor to handle your real estate energy needs, it isn’t easy to determine whether a significant investment is saving you money, and energy is one of the most expensive requirements of commercial property management. At the Green Real Estate Conference, held in late March in Toronto, a panel of experts from the energy sector addressed this topic and provided valuable insight on the best practices for energy management in commercial real estate. One analysis, provided by the forum organizers, estimates that energy costs comprise around 40 percent of building operating expenses. But the opportunity to reduce those costs is tremendous: a newly constructed green building typically cuts down conventional energy output by around 30 percent. And even if you are not building a new structure from the ground up, there are now alternative management methods to save resources and reduce expenses – often with minimal work required. Swift advancement in technology monitoring systems now makes it possible for large commercial buildings, with...