Two Charlton Owners Corp. Implements Innovative Approach to Energy Efficiency

At Two Charlton Owners Corp. in Hudson Square, the board has implemented a forward-thinking strategy to enhance energy efficiency through three key electrical upgrades. "We've created a brand new electrical infrastructure," says co-op board member Chris McGinnis, who began planning these initiatives several years ago when he saw electrification on the horizon.

The Three-Pronged Approach The 175-unit postwar building's transformation involved three major components, with a total cost of $850,000. Half of this cost was covered by Con Edison's Power Ready program, which funds electric vehicle (EV) charger installations. The remaining expenses were funded through capital reserves generated from a previous refinancing at 3% interest rates.

Submetering  The cornerstone of the upgrade is submetering, which allows the co-op to benefit from lower commercial electricity rates. Two Charlton partnered with DaisyChain, a submetering and decarbonization company, to transition from individual Con Edison residential meters to a master meter system. Shareholders continue to pay their previous rates, while the co-op pays a lower master meter rate and keeps the difference. Shareholders also benefit by paying reduced monthly meter service charges — $7 with DaisyChain compared to Con Edison’s $22.

With submetering, says DaisyChain co-founder Alex Blumberg, the financial benefits are clear. “If a building pays for the upgrades themselves, the payback is two to four years, and after that they are generating income for themselves."

Electrical Room Modernization  Understanding that new systems require modern infrastructure, the co-op took the essential step of modernizing their electrical room. This upgrade created the foundation necessary to support both current improvements and future innovations, ensuring the building's electrical system could handle the demands of 21st-century energy management.

EV Charging Installation  Two Charlton has a garage, which is operated by iPark, and it took advantage of Con Edison incentives to add 38 EV charging stations.The charging system has opened up multiple revenue streams through Con Edison's SmartCharge New York program.

Through it, the building earns 10 cents per kilowatt-hour when charging occurs during off-peak hours, from midnight to 8 am. Additional incentives reward the building for avoiding peak summer charging during weekday afternoons. The SmartCharge Commercial program adds another layer of revenue, providing 3 cents per kilowatt-hour for off-peak charging. To maximize benefits, says McGinnis, he has developed a strategy “to only let shareholders in the building charge at night."

Future Plans and Benefits The board plans to add a solar array on the roof, which will create what Blumberg describes as a synergistic relationship between the building's energy systems. "When you combine solar and EV chargers with submetering, those three things together are greater than the sum of their parts," he explains.

This combination will create a sophisticated energy ecosystem: solar panels will generate electricity, EV batteries will provide storage capacity, and DaisyChain's software will optimize electric load management. The building will then be able to participate in curtailment programs — also known as demand response — where they can earn additional financial rewards by reducing energy consumption during peak periods. The system also allows the building to avoid expensive peak charges when the cost of electricity increases substantially to meet high demand. 

The key to affordability for these projects is accessing available incentives and taking payment through the cost savings generated by submetering. Con Edison continues to offer incentives through their Power Ready program, though they encourage quick action as funds are limited.