Solving the Power Crisis in Multi-Family Housing

Power outages in the U.S. are rising, affecting power reliability in multi-family housing.

Over the past decade, the U.S. saw 74 percent more storm-related power outages than the decade before, according to a recent report. As climate shifts spark more severe weather, the public grid becomes more vulnerable. More than 70 percent of transmission lines are over 25 years old and approaching the end of their lifecycle.

Multi-family residences—including apartments, condos, and senior living facilities—are at a greater risk for power outages because of their shared infrastructure and limited backup capacity. Recent weather disasters highlight the need for resilient energy solutions. 

For example, when the remnants of Hurricane Sandy struck the greater New York City area, residents of the city’s public housing experienced devastating outages. Many elderly and disabled residents were trapped for days in the upper stories of high-rise buildings when outages made elevators inoperable. When a snowstorm came on the heels of the hurricane, families struggled to stay warm without heating systems and hot water. The storm became the worst natural disaster ever to impact New York’s public housing system.

Understanding the Unique Challenges in Multi-Family Energy Resilience

Managers of multi-family properties face different hurdles in ensuring energy resilience for residents. For larger structures, backup power is often limited. While local laws typically require high-rise buildings to have emergency generators, their capacity only needs to support critical functions, such as running fire pumps and supporting emergency lighting in hallways. 

Smaller multi-family properties, such as apartment buildings or townhouses, may not have backup generators. 

With little to protect residents from the impacts of power outages, owners of multi-family housing properties must cope with consequences that can include: 

Prolonged Outages

As extreme weather events increase, so does the risk of prolonged power outages. High-rise buildings quickly become uninhabitable when heat, air conditioning or elevators fail. Elderly residents may be trapped without elevator service and need to be evacuated, especially if indoor temperatures become too hot or cold, depending on the weather. As power outages linger, building owners and local municipalities must often locate and fund hotel accommodations for displaced residents. 

After a 2021 cold snap in Austin, Texas, burst pipes caused by a power outage at an apartment complex flooded residences and introduced mold. The owner was forced to evict almost 90 percent of residents due to the untenable living conditions. 

Resident Displacement

When residents of multi-family housing are forced to leave their apartments, the elderly and medically vulnerable populations are often hardest hit. Older or disabled residents may be less likely to evacuate ahead of a hurricane or other impending storm, making them more vulnerable to the after-effects of prolonged power outages. 

When Hurricane Irma caused weeks-long outages in 2017, residents at a senior apartment community in Eustis, Florida, did not have backup power. The building’s management staff had to contact FEMA to arrange temporary housing for impacted residents.

Financial Costs

Prolonged power outages can trigger significant costs for owners of multi-family properties. Power surges can damage or destroy appliances, electrical panels, and other equipment, and extreme temperatures during days- or weeks-long outages can result in significant—and costly—property damage. Surging insurance premiums introduce ongoing costs, and these hikes are rampant in regions of the U.S. impacted by recent hurricanes and wildfires. 

Owners and property managers also face a loss of rental income when residents must evacuate due to prolonged outages. Ultimately, the rising costs for property owners will also impact residents as housing prices escalate to cover new expenses.

Safety Risks

Residents of multi-family housing may face increased safety hazards during power outages. In high-rise buildings, fire alarm and sprinkler systems rely on backup power—but that power is often limited. Residents may use candles or lanterns to provide light, increasing the risk of fires.

Darkened hallways and units increase the prevalence of accidents, especially for elderly or disabled residents. Carbon monoxide detectors typically rely on electrical power, leaving residents vulnerable to poisoning when the power is out. And power outages during extremely cold or hot weather can endanger lives. Following Hurricane Ida in 2021, people living in a New Orleans senior living apartment complex suffered from dehydration and heat-related illnesses, and five residents died.

Traditional Backup Power Isn’t Enough

Traditional backup power supplies, such as diesel generators, often cannot meet the high demands of multi-family buildings. Investing in a generator that can provide enough power for a multi-story shared building is expensive and cost-prohibitive for most owners. Ongoing costs for maintenance and fuel are high, and diesel-powered generators create significant noise and exhaust. In addition, if the backup power supply fails to deliver a steady flow of power, voltage surges and poor power quality can damage appliances, electronics, and building systems. 

The Solution: On-Site Power Generation and Energy Storage 

Because traditional diesel backup generators present these limitations, many multi-family property owners are seeking new solutions. 

Generators are only part of the solution, but when they’re paired with a battery energy storage and integrated with the public grid, they become much more reliable and valuable. 

A microgrid is a self-contained energy system for a specific area, integrating distributed sources like solar, battery storage, and management software. Unlike traditional backup power, modern microgrids are intelligent, using software to manage energy storage and sources. This software strategically balances resources based on priorities, such as minimizing environmental impact or energy costs within its limited geographical scope. Essentially, a microgrid acts as a localized, smart power network capable of supplying reliable energy.

Microgrids for Apartments

For multi-family structures, a microgrid can provide a versatile solution during an outage because it can disconnect or “island” from the public grid during a failure and operate independently. Microgrids often depend on a combination of distributed energy sources (DERs) such as solar arrays and wind turbines, combined with a battery energy storage system (BESS) and a natural gas-powered backup generator. 

The Marcus Garvey Apartments microgrid in Brooklyn, New York, is an example of such a system in action. The unique project combines solar panels, a large battery, and fuel cell generators to ensure resilient power for the 625-unit development in case of an outage. 

While microgrids can be a viable solution for multi-family buildings, setting them up can be complicated and costly. Governments around the world have placed regulations on microgrids, and waiting for needed approvals and permits can take years.

The R3Di® System for Residential Buildings: A Turnkey Microgrid Alternative

Microgrids for multi-family structures can offer many benefits, but they’re often complex and resource-intensive to implement. e2Companies’ R3Di® System delivers the same advantages as a traditional microgrid in a ready-to-deploy modular unit. The R3Di® System relies on a combination of distributed energy resources, a natural gas generator for additional support, and a safe and sustainable lithium iron phosphate (LiFePO4) battery for energy storage. The system can store and provide 1 megawatt or more of fast-discharge, full-site uninterruptible power to cover your facility’s full load while reducing emissions by up to 99% compared to diesel generators. 

When combined with energy optimization software and services that deploy the system at strategic times, it delivers the full power of a public utility at your site — known as Virtual UtilityⓇ.   

Here’s why it might be a smarter, more streamlined option than building your own system:

• Skip the expensive and lengthy engineering process.
  Designing a microgrid typically involves hiring in-house or third-party engineers to draft custom plans and ensure all parts integrate correctly. e2Companies eliminates this step by offering a pre-engineered system, with all necessary customizations included in the base price.
  
  
• Eliminate the need for an interconnection agreement.
  The regulatory hurdles of a conventional microgrid can be daunting. Our team of experts manage everything from EPA requirements to ongoing emissions tracking. Because the system integrates directly with public utilities, there's no need to wait for an interconnection agreement, which can delay projects by years.
  
  
• Maximize efficiency and reduce energy costs.
  Using our proprietary Grove 365 software and a team of professionals working 24 hours a day, seven days a week, we actively monitor energy resources, weather patterns, and market pricing to help your business fine-tune its energy mix to maximize savings and performance.
  
  
• Prioritize flexible installation and integration.
  The R3Di® System can be deployed in new developments or retrofitted in existing buildings, and it’s easy to scale for entire complexes. Compatible with EV charging, solar panels, and other renewable energy sources, the system gives you the freedom to adapt it to fit the unique needs of your building or complex.
  
  

Financial Incentives and ROI for Property Owners

Property owners can benefit from significant savings when they invest in a ready-to-implement microgrid solution such as R3Di® System. 

Here are a few of the financial incentives and savings opportunities:

• Investment Tax Credit (ITC)
  Part of the 2022 Inflation Reduction Act (IRA), the Investment Tax Credit (ITC) lets you deduct a percentage of the cost of eligible clean energy systems. The base percentage of the federal tax deduction is 30%, but if your project meets certain criteria—such as falling within a designated “energy community” or serving as affordable housing in a low-income community—you may gain an additional 10% deduction for a total of up to 40% tax savings.
  
  
• Energy Service Agreement (ESA)
  An Energy Service Agreement (ESA) empowers property owners to pursue a renewable energy solution with minimal upfront costs. Our Grid Response Optimization of Virtual Energy (Grove) works as a powerful partner in energy management, monitoring weather, market rates and grid conditions around the clock to ensure you get the most out of your assets. We also deliver comprehensive energy solutions through ESAs. We manage operations and maintenance of the R3Di® System, ensuring resilient and cost-effective on-site energy generation for your multi-family building.
  
  
• Reducing Utility Power Consumption and Costs
  Using the R3Di® System reduces your property’s reliance on public utilities, reducing additional charges for using power during times of high demand and lowering your total utility bill. With this system in place, you can also take advantage of utility incentives like demand response programs, where you curtail your power consumption during periods of anticipated high demand in exchange for receiving payments. 

Our Virtual UtilityⓇ calculator can give you a more accurate estimate of your property’s potential costs and savings.

Building Resilience Where It's Needed Most

Multi-family buildings can't afford to gamble with power reliability. Residents depend on access to power during natural disasters and adverse weather conditions. Solutions such as microgrids and onsite Virtual Utility® solutions offer a sustainable path forward—and act as insurance for property owners against the havoc these power outages can wreak.

Schedule a discovery call and learn how e2Companies can help protect your residents and investments.