How Build-to-Rent Developers can Meet New Solar Regulations for Flats

Posted by Allume Energy on 30th October 2024 -

Historically, landlords have added solar PV systems that power communal areas of apartment buildings, but these systems have been made redundant under the new Standard Assessment Procedure (SAP) guidelines.

The introduction of SAP 10.2 in England and Wales in 2022 means solar systems that are not directly connected to apartments no longer contribute to SAP scores or provide an Energy Performance Certificate (EPC) uplift.

This article will guide you through what these changes mean and what steps can be taken to meet the new requirements.

What are the benefits for build-to-rent developers of directly connecting solar PV to flats?

• Boosting energy efficiency ratings
  One key component in a SAP assessment is the source of the home’s energy. Homes that utilise renewable energy sources, such as rooftop solar PV systems, achieve higher SAP scores (typically by 5-15 points) due to their reduced reliance on grid energy. This makes solar PV a powerful tool for improving SAP scores and EPC ratings, as well as the overall energy efficiency of a building.
• Improving tenant satisfaction & retention - tenants want lower energy bills and support the renewable energy transition.

• Supporting sustainability goals
  In the push to meet carbon reduction targets, and access Sustainable Financing or Green Mortgages, integrating solar power into apartment buildings helps reduce overall carbon emissions.

• Potential ongoing revenue streams - some landlords have chosen to charge a small ‘solar access fee’ to tenants. Savings on their bill far outweigh this fee, creating a win-win scenario.

What are the options for build-to-rent developers to directly connect solar to flats?

Traditionally, connecting individual flats to solar has been a major challenge for developers; the risks, complexity and cost of installing individual systems is highly prohibitive and there generally isn’t enough roof space to accommodate all flats in the building.

Australian-born company, Allume, has developed a world-first innovation to solve this problem - a solar PV sharing device, SolShare.

This smart hardware splits the energy from a single rooftop solar system and shares it between flats. The allocation of solar can be adapted according to a developer’s individual needs - for instance, where flats may have varying EPC ratings, more solar can be allocated to flats with lower SAP scores. A recent example of this can be seen in this case study.

SolShare maximises the amount of solar consumed compared with individual systems. Its algorithm determines which apartments to send energy to, based on their usage profile. This results in higher bill savings for every tenant.

One of the challenges for landlords with apartment buildings is monitoring energy usage across a building for ESG and company metrics. Allume provides a monitoring portal for asset managers to track building-wide energy data, including common areas. Quarterly energy performance reports can be set up for reporting purposes.   

Is solar sharing technology suitable for existing buildings as well as new developments?

Yes. Both new builds and existing buildings can benefit from Allume’s SolShare. It can be scoped into new development plans easily or, added with a solar system onto an existing building or be retrofitted onto an existing landlord PV system.

Can landlords make a return on investment from shared solar for flats?

Absolutely - SolShare is one of the most cost-effective energy efficiency upgrades available to build-to-rent landlords in comparison with alternative measures, due to higher EPC ratings. In some circumstances, solar energy can be charged to the residents and buildings that achieve higher EPC ratings may attract higher rents.

How do I determine ROI for my building or portfolio?

To learn more about how Allume’s SolShare can enhance your portfolio, submit your information below, and we'll be in touch with you soon.