Virtual Net Metering (VNEM) Explained for Landlords — In Plain English

If you've heard the term and nodded knowingly without actually understanding it, you're not alone. This is what's actually happening underneath the buzzword.

The problem VNEM solves

In a single-family home, solar is simple: one roof, one meter, one bill. When the panels produce more than the home uses, the surplus flows backward through the meter and the utility credits the homeowner.

In a multifamily property, you have one roof and many meters. Each unit is a separate utility account. Traditional net metering only credits the meter that's physically wired to the array — which would be the building's common-area meter, not the individual tenant meters.

That's where VNEM comes in.

What VNEM does

Virtual Net Metering lets the utility allocate solar production credits across multiple meters virtually — based on a percentage split the property owner defines. No new wiring, no submeters, no in-unit hardware. The credits show up on each tenant's existing utility bill.

So a 100 kWh production hour gets split: 8% to Unit 101, 9% to Unit 102, etc. The utility does the accounting. The tenant sees a credit line on their normal monthly bill.

How NOI uses it

NOI doesn't issue tenant credits through the utility — we bill the tenant directly for the solar share at an agreed rate (15–25% below utility). The VNEM structure underneath lets us allocate production cleanly across the property and reconcile against actual generation.

For tenants, the experience is one bill, one autopay, one obvious saving. For the landlord, one new revenue line.

States with mature VNEM rules

California (VNEM-A for multifamily)
New York (VDER framework + remote net metering)
Massachusetts
New Jersey
Illinois
Maryland
Colorado
Vermont
Rhode Island
Maine
Minnesota
Hawaii
District of Columbia

Texas, Florida, Arizona, and Nevada operate under different but functionally similar frameworks (direct retail or behind-the-meter allocation).

States to wait on

A handful of states are mid-rulemaking. We refresh this list quarterly. If your property is in one of them, we'll qualify before any agreement is signed.

The single biggest misconception

VNEM is not a subsidy. It's an accounting rule. The utility isn't paying for the panels or the credits — it's just allocating the credits to the right meters based on a percentage table. That's why it's politically durable: nobody is asking the rate base to fund anything.

Want to see what your roof could earn? Estimate your NOI lift or talk to our team.