How to use the portfolio-level approach to finance solar across multifamily properties

To facilitate building owners’ access to renewable energy sources that provide electricity cost stability and improved building performance, NHT-Enterprise pioneered a new model for installing solar on multifamily affordable housing properties. The model involves housing owners setting up an independent entity to purchase and own solar PV systems installed on buildings across their portfolios. The approach, referred to as the “portfolio-level solar” or “blocker corporation” model, has the advantage of allowing nonprofit affordable housing owners to take advantage of tax credits and avoids the financial complexity involved with more traditional financing of improvements to affordable housing properties.

In 2014, NHT-Enterprise installed solar PV systems on properties across its multifamily affordable housing portfolio in Washington, DC. The independent entity established to own and operate the solar PV systems is called NHT-Renewable. Now, NHT-Enterprise is working with other multifamily housing owners to take advantage of this opportunity.

On this webinar, Jared Lang, Assistant Vice-President for Sustainability at NHT-Enterprise, provided an overview of how the portfolio-level solar model was created and described how NHT-Renewable is assisting affordable multifamily housing owners deploy solar across their portfolios. Esther Toporovsky, Senior Program Director of Green Communities at Enterprise Community Partners, provided details on the Washington, DC project’s financing structure, development budget, underwriting process, and savings results. NHT-Renewable has also completed a project with Denver Housing Authority. Chris Jedd, Portfolio Energy Manager at Denver Housing Authority, detailed his experience of the challenges and benefits of using this portfolio-level approach to solar deployment.