Two metro Orlando area apartment communities either have or are receiving millions of dollars in tech upgrades related to energy efficiency and climate resiliency.
Work was completed and showcased recently by Renu Communities, a subsidiary of Boston-based private equity real estate firm Taurus Investment Holdings LLC, on the 296-unit Canopy Apartment Villas community in Orlando.
The retrofit is also ongoing at the 360-unit Rosemont Windermere property in Orlando, as well as at a third property in Tampa, said Chris Gray, the chief technology officer for Renu Communities.
Why it matters: As previously reported, the work on the Orlando communities is an investment being made as part of an ESG-centric decarbonization venture valued at $600 million. The retrofits, which can reduce complex-wide energy consumption by 20%, among other benefits, may yet be installed at more local properties also.
Gray declined to cite a specific capital investment figure that Taurus has put into the two properties in metro Orlando but instead noted that a typical capital investment can range from 5-10% of the asset's value.
Given that entities related to Taurus bought the Canopy Apartment Villas for $76.2 million in May 2022 and Rosemont Windermere for $90.5 million in September 2022, that suggests the retrofit investment for the two combined properties is likely north of $8.3 million.
The upgrades include rooftop solar installation, HVAC and hot water system upgrades, as well as onsite renewable production and electrification of all services. Other upgrades include LED lighting installations, ductwork reconstruction, high-efficiency heat pump retrofits, roof insulation and toilet replacements.
In particular, Gray told Orlando Inno he was excited for Renu's partnership with Allume Energy that installed "shared solar" technology, called SolShare, that evenly distributes solar energy from one panel to multiple apartments.
He added that, because tenants pay their own energy bills,100% of the energy savings are passed on to them, in addition to potential benefits insofar as climate resiliency in the event of storm-induced power outages.
"In a time when severe weather throughout the state regularly threatens the electric grid, Renu Communities’ comprehensive energy retrofit offers multiple potential benefits for both tenants and the property owner, including a lower energy profile and onsite energy production via solar panels," Gray said. "Our retrofits help [lessen] the costs to residents, provide a more comfortable living environment and provide a tenant more control over their energy bill."
Meanwhile, Florida has about 461 solar companies as of fourth-quarter 2022, including 229 installers/developers, 63 manufacturers and 169 others, according to the Washington, D.C.-based Solar Energy Industries Association. The Sunshine State ranks No. 3 for total solar capacity installed.
The U.S. added 20.2 gigawatts of new solar capacity in 2022, down 16% from 2021, according to a Solar Energy Industries Association report done in partnership with United Kingdom-based energy research and consulting firm Wood Mackenzie.
The report attributed the drop to an investigation into new anti-circumvention tariffs by the U.S. Department of Commerce as well as equipment being detained by U.S. Customs and Border Protection tied to the Uyghur Forced Labor Prevention Act.
“While 2022 was a tough year for the solar industry, we do expect some of the supply chain issues to ease, propelling 2023 growth to 41%,” Michelle Davis, principal analyst at Wood Mackenzie and lead report author, said in a prepared statement. “With major uncertainties ahead of the industry, our high- and low-case scenarios can help the industry benchmark potential outcomes."
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