How Commercial Solar Benefits Small Businesses

by | Dec 19, 2024

Commercial electricity rate increases continue to squeeze profit margins for small businesses across the country. With over $8.9 billion in estimated net rate increases in 2024, these businesses, which form the backbone of local economies, need sustainable, affordable energy options that don’t require major capital investment.

Most small businesses rent their space, making traditional solar installations impractical. Commercial property owners increasingly recognize this challenge, partnering long term with solar providers to make clean energy accessible and affordable for their tenants.

An industry leader, King Energy’s unique no-cost program structure unlocks the benefits of solar for both owners and small businesses. Their 2024 Impact Report demonstrates the real impact of this approach, showcasing the value that commercial solar offers to local entrepreneurs.

 

Unlocking Financial Benefits for Businesses, Owners, and the Community

Commercial solar delivers clear financial benefits across the entire business ecosystem. Property owners generate new revenue from unused roof space, while tenants reduce operating costs through discounted energy rates. Even local residents benefit through community solar programs that expand clean energy access.

Small businesses realize substantial utility savings through these installations. Since 2021, King Energy’s systems have generated over $470,000 in energy savings for participating small businesses in programs across the nation. This predictable cost reduction from utility bills provides an immediate impact on monthly expenses.

Property owners also benefit from transforming unused commercial roofs into reliable revenue streams through solar rent payments. The monthly income improves Net Operating Income and increases the value of their investment. This combination has contributed to over $110 million in added property value across King Energy’s portfolio since 2021.

These solar savings create real opportunities for business growth. Restaurants can invest in new equipment. Retailers can expand inventory. Service businesses can hire additional staff. Property owners can leverage increased borrowing power. Every dollar saved on energy becomes available for business expansion and improvement, strengthening the entire local economy.

 

Enhancing Business Resilience with Solar

Local energy generation also increases business stability by creating reliable infrastructure and stable prices. On-site solar production and batteries reduce reliance on distant power sources, providing a consistent energy supply during peak demand periods when traditional electricity costs spike. 

Outside of surge costs, solar installations also protect small businesses against general market volatility. While traditional utility rates fluctuate based on fuel costs and market conditions, solar provides predictable energy expenses. This consistency allows small businesses to budget effectively and plan for growth.

Solar resilience extends beyond businesses to impact the local community. Distributed solar systems reduce strain on local power grids during peak usage times. This enhanced grid stability supports operations across entire commercial areas, creating more stable and reliable networks.

Long term, this protects against potentially disastrous and unpredictable blackout losses. Outage costs small businesses valuable revenue: restaurants have spoiled food, retail experiences lose sales, production lines halt, and more. In 2019, a single blackout in California was estimated to have cost small commercial and industrial businesses around $2.4 billion.

 

Meeting Business Sustainability Goals

Commercial solar systems create measurable environmental impact for participating businesses. Every small business connected to these systems lowers its carbon footprint and directly contributes to reducing greenhouse gas emissions. King Energy’s programs are responsible for over 16,000 tons of CO2 emissions avoided since 2021 through commercial installations.

Sustainability commitments increasingly influence consumer choice, offering competitive advantages to businesses that pursue and achieve targets. Research shows that brands that highlight sustainability-related claims see higher repeat purchase rates, suggesting stronger consumer loyalty. Solar adoption provides clear, measurable evidence of this environmental responsibility that resonates with modern consumers.

Solar installations also help small businesses align with the broader ESG standards from property management, investors, or larger corporate partners. The systems provide documented environmental metrics, support community energy independence, and demonstrate sound business governance through long-term cost management. This approach to sustainability helps small businesses compete in an increasingly environmentally-conscious market.

 

Simplifying the Transition to Solar

The switch to solar is also made simple with the partner managing the entire solar process—eliminating complexity for both property owners and small businesses. The installation, maintenance, customer service, and monitoring are handled by the King Energy for the long term.

For small business tenants, participation involves a simple enrollment process. They sign up for OneBill, the enterprise-grade software platform, and receive discounted energy and streamlined reporting within the next billing period. This accessibility helps explain why 88% of King Energy tenants are small businesses—the program removes traditional barriers to clean energy adoption.

Unlike other solar installations, King Energy maintains long-term involvement and ensures the success of the program. This partnership approach keeps the system operating at peak capacity throughout its 25-year lifespan, maximizing benefits for property owners and their tenants. This regular monitoring and maintenance keep energy production and savings consistent year after year.

 

Impacting Small Businesses in the Long Term

Commercial solar creates lasting positive change for small businesses. Beyond the documented $470,000 in energy savings since 2021, participating businesses gain long-term price stability and environmental benefits that help them thrive.

By unlocking these advantages for their tenants, property owners also benefit from a new source of reliable income. The combination of new revenue, increased property value, and enhanced tenant satisfaction makes solar a sensible investment for commercial properties.

For commercial property owners interested in supporting small business success while improving their bottom line, solar offers a proven solution. King Energy’s track record, 88% small business participation and $100m in added property value, demonstrates how accessible solar benefits entire business communities.

Discover how King Energy Helps Tenants and Owners: Read the 2024 Impact Report