855773667-LEED-v5-O-M-Reference-Guide-Launch-Edition-1 - Page 152

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less any transmission and conversion losses, such as standby heat loss, losses when converting electricity from DC to AC, or waste heat that is exhausted to the atmosphere. Excess energy, beyond the building’s energy demand at a given point, can be sold to the utility company (net metering) when all associated renewable attributes are retained by the project owner.

Additional considerations: Non-qualifying systems Renewable fuels harvested, produced, or refined offsite and used to generate thermal energy or electricity onsite are classified as Tier 3 renewable energy, and shall not be counted as Tier 1 renewable energy.

Tier 1 social impact project Project owners may opt to install renewable energy on a social impact project site with a capital investment similar to that incurred for installing a new renewable system on their own project site. A social impact project is defined as a building or project site providing housing and/or community services to historically marginalized communities. Examples include but are not limited to affordable housing projects, community centers, schools, or recreational facilities serving historically marginalized communities.

For social impact projects, the project owner who owns, operates, and/or occupies the building shall have no financial burden for the renewable equipment, the installation, or the commissioning of the renewable system. The social impact project owner must gain ownership of the system. They will have the right to power generated from the new system. This provides affordable, clean power that will result in permanent cost savings to members of historically marginalized communities.

For residential social impact projects, residents responsible for paying their electricity bills must receive proportionate cost savings from renewable power generation. Renewable generation may be allocated first to central water heating and HVAC equipment serving the residential units before proportioning the remainder to the residents.

This social impact project contributes toward credit compliance perpetually, regardless of when the transfer of the project was made.

Additional considerations: Non-qualifying Tier 1 social impact projects Most community renewable energy installations do not comply with the social impact project requirements for the location of the renewable system and permanent transfer of ownership and rights to the power to the social impact project owner.

U.S. Green Building Council LEED v5 Reference Guide for Operations and Maintenance, April 2025 Launch Edition 142