Businesses often face a common challenge: high energy costs cutting into already thin margins. In low-to-moderate income (LMI) communities especially, these costs often make the difference between growth and closure. Solar changes this dynamic.
While once inaccessible for LMI markets, new structuring agreements that require no capital investment from property owners or tenants help clean energy make sense for commercial properties in LMI neighborhoods. Partners like King Energy increase access for the communities that need the benefits and cost savings of solar most.
Detailed in the 2024 Impact Report, King Energy programs positively impact LMI communities nationwide. With 48% of their 200+ solar systems in these areas, these programs create lasting economic relief for underserved communities by increasing access to clean energy. Here is how:
Generating Commercial and Community Savings with Solar
Commercial and community solar installations deliver direct financial benefits for LMI communities. Whether powering public community solar programs or privately owned commercial properties, these systems repurpose unused roofs to generate affordable clean energy for households and small businesses.
The savings impact is significant. Through discounted energy rates, tenants cut operational costs, which can be very valuable in areas with high electricity prices. Since 2021, King Energy has generated over $399,000 in energy savings for businesses and residents in LMI communities.
For small businesses, these savings provide crucial operating capital. Reduced energy expenses mean more resources for inventory, staffing, and business growth. As an added incentive, these systems also help these businesses work towards their sustainability goals, meeting growing consumer demand for environmental responsibility.
Property owners benefit from the solar installations as well, receiving monthly roof rent for the square footage. When factored over the 25-year lifespan of the system, this creates a new tangible, long-term revenue stream for property owners.
It’s a winning combination that strengthens the entire business ecosystem. Property owners receive monthly rent for their roofs, while tenants and residents benefit from lower utility bills.
Improving Access and Equitability
By increasing access to solar in LMI areas, Solar programs increase the resilience of the local entrepreneurs that these communities depend on.
Small businesses form the backbone of local and national economies, particularly in LMI communities. According to the US Bureau of Labor Statistics, small businesses contributed 55% of the total net job creation from 2013 to 2023 and employ almost half of the US workforce, which translates to around 59 million people.
When solar programs remove traditional barriers to clean energy adoption, they provide greater energy security for these vital businesses. Whether in a retail center or industrial park, this access and savings strengthens their position in the market and improves their ability to compete.
These entrepreneurs understand the benefits—88% of tenants participating in King Energy’s programs are small businesses. This high participation rate showcases how commercial solar effectively serves those who need it most.
Increasing Property Value in LMI Communities
The financial benefits of commercial solar installations extend to property owners in LMI communities as well. These no-cost solar systems boost the value of their building while also unlocking new revenue streams for their property.
King Energy invested or deployed $68 million into LMI communities, providing property owners with new revenue streams and unlocking larger financial benefits. The program’s monthly payments for roof space increase a property’s gross income, directly improving NOI. With commercial property valuations typically dividing NOI by the capitalization rate, this additional income translates to real, quantifiable growth.
Because of these investments, King Energy’s systems added $110 million in value to commercial properties across their portfolio. These incentives mean increased borrowing power, greater financial flexibility, and boosted value for stakeholders. For tenants, they mean more stable properties and higher-quality neighbors.
Building Community Resilience
Local renewable solar programs also strengthen the electrical infrastructure within their communities. Solar installations reduce strain on the power grid and reduce outages. By generating electricity close to where it is consumed, solar power lightens the load on the grid and limits the demand for electricity from traditional power plants.
Power also no longer needs to travel across long distances, which cuts down on distribution loss. As electricity moves from generation plants to end users, resistance in transmission lines and transformers expels some energy as heat. From 2018 through 2022, annual electricity transmission losses averaged about 5% of the electricity distributed in the United States.
These benefits are especially valuable in historically underserved areas. Because of infrastructure neglect and other social equity concerns, these communities typically suffer from technical challenges that put them disproportionately at risk.
To monitor, King Energy’s enterprise-grade software provides performance tracking across all installations. This platform, OneBill, ensures optimal system performance while providing detailed reports on energy production, cost savings, and environmental impact. Property owners receive regular updates on system performance and financial benefits regardless of system size.
Impacting LMI Communities with Clean Energy
Commercial solar is more than just an energy solution—it’s a tool for economic and social resilience in LMI communities. King Energy’s track record, 48% of systems in LMI areas, $68 million invested, and hundreds of thousands in documented savings, proves that making an impact is possible.
It isn’t just about renewable energy—it’s about creating opportunities. By making clean energy equitable, these programs provide LMI communities with the tools to reduce economic strain, enhance energy security, and build a more resilient future.
For commercial property owners, solar represents a unique opportunity to drive change in their community while improving their own financial outlook. It’s a win-win approach that makes financial sense for owners and tenants alike.
See how King Energy is making solar, accessible, reliable, and profitable: Read the 2024 Impact Report