King Energy
Solar for Commercial Property Owners without the Cost

'Why?' and ‘Why not?’ are the questions that inspire entrepreneurs to bring innovations to market.

For serial entrepreneur and CEO of King Energy, John Witchel, the ‘why’ moment came while flying into Los Angeles International Airport and seeing countless commercial buildings without solar panels.

“It’s widely understood that renewable energy offers real financial benefits, so there had to be a good reason why these large, open rooftops weren’t covered in solar. I knew I wasn’t the first entrepreneur looking for an answer.” says Witchel.

Witchel quickly discovered that less than 10% of commercial buildings had installed solar, mainly due to the “split incentive problem.” Landlords had no incentive to lower the cost of energy to their triple-net lease tenants, and tenants had no incentive to invest in improving a building they don’t own. In short, neither party was motivated to make the investment.

“The answer was simple: King Energy would build, own, and operate the solar and deliver the benefits to both landlord and tenant. We solved the split incentive problem in a hasslefree way that makes clean energy adoption simple yet lucrative for owners and tenants,” says Witchel.

Their solution was delightfully simple: rent the roof from the landlord. No strings attached. No revenue sharing, no investment, no complex tax schemes. Just plain old rent. Then, sell the energy to the tenants at a discount to what they would have paid if they had pulled the power from the grid.

Turning Solar Energy Solutions into a Financially Sensible Proposition

King Energy installs commercial-scale solar panels at its own expense, leaving owners free from any investment commitments. Because the company manages the entire process from panel installation to maintenance, they also don’t assume any extra responsibility.

Many commercial landlords have past experience renting their roof to cell tower owners. King Energy’s approach is similar. It is designed to maximize rent to the landlord on a part of the building that doesn’t usually generate rental income. The key was to make that a hassle-free experience.

To bring their projects to life, King Energy contacts commercial property owners with more than five tenants, offering to rent their unused roof space with nothing more than a standard 5-page lease.

There are no complicated financial arrangements or partnerships involved. Property owners simply receive a monthly rent check for their empty space, and King Energy manages the solar project end to end.

“So a landlord goes from making no money off their roof to making pretty good money with no capital commitment,” says Witchel, “Our goal is to treat the building’s roof like any other part of the property that can be rented, and we are just another tenant.”

The approach creates a straightforward source of additional income for property owners while also increasing the property’s value and rent roll.

On the renter side, the energy generated from the solar panels is used by the building’s tenants, whether a local yoga studio or a national chain. No matter their size, they save money on their energy bills and get access to locally-produced, renewable energy.

Everyone is looking for ways to improve their finances in an uncertain economy, and solar is a win-win for both property owners and their tenants. King Energy manages the system, landlords increase their rent roll, and tenants see lower monthly energy expenses.

Energy Bills Simplified

The “split incentive problem” wasn’t the only challenge that King Energy needed to overcome to bring solar to commercial rooftops. It also needed to create a simple way to bill tenants for their power. Once solar solutions were installed, tenants now had two energy bills; one for the solar energy they consumed and another for the grid. King Energy needed to merge these charges into a straightforward statement and reduce their complexity for tenants.

"The Answer was Simple: King Energy Would Build, Own, and Operate the Solar and Deliver the Benefits to Both Landlord and Tenant. We Solved the Split Incentive Problem in a Hassle-free Way that Makes Clean Energy Adoption Simple yet Lucrative for Owners and Tenants"

According to Witchel, “This difficulty becomes even more challenging at scale. We didn’t just need to create one simple, easy-to-use bill; we needed to create hundreds of thousands of bills for tenants, without any human interaction. Our solution to this tedious process is OneBill™.”

A home-grown payment software that tracks energy consumption across all tenants, the OneBill™ platform combines local utility and solar bills in a simple statement. It also allows tenants to make a single payment for all of their energy use, reducing the complexity and confusion that comes with dual-source energy systems or multi-page invoices from utility providers.

“With OneBill™, we make it easy for tenants to use renewable energy and feel confident in their invoice and savings. They receive one statement for all of their usage and make one payment, then King Energy handles the rest.” says Witchel.

But King Energy’s billing system isn’t the only way they create great client experiences, it also goes the extra mile to educate clients and encourage adoption of solar.

Client-Centricity at its Finest

King Energy’s dedicated team is committed to helping owners and tenants understand its advantages. There are a number of moving parts involved with commercial solar, creating a steep learning curve for those that have little to no experience in the industry. To overcome this barrier to entry, the company provides a tenant relationship team to encourage enrollment and a customer support service to address client queries.

Many triple-net tenants and owners have benefited from King Energy’s adaptable solar programs. A notable success story is a Cuban restaurant on the central coast of California, a longstanding lunchtime favorite in the community. Running fryers, subzero refrigerators, dishwashing machines, and various lighting fixtures all day, every day, the restaurant’s energy bills were prohibitively high. King Energy recommended solar as a solution, but the restaurant owners were initially skeptical about its output on cloudy days. They wanted to ensure the program was risk-free, required no commitments, and would not put them in a worse position. King Energy explained that the program was entirely reliable, tested, and transparent. If the system wasn’t generating enough power, their business would automatically draw additional energy from the grid to ensure zero power outages.

With Onebill™, We Make It Effortless For Tenants To Use Renewable Energy And Feel Confident In Their Invoice And Savings. They Receive One Statement For All Of Their Usage And Make One Payment, Then King Energy Handles The Rest

After King Energy onboarded the restaurant as a client, their energy bills decreased significantly. Now, in addition to saving on energy bills, the restaurant is actively reducing their carbon footprint, which appeals to customers’ growing concerns about sustainability.

Another client that can attest to the value is a national phone service chain. With King Energy’s assistance, this environmentally-conscious client powered multiple stores with green energy, saving costs without capital investment.

King Energy’s success can be attributed to a group of committed experts with diverse industry knowledge who share a common goal of making green energy accessible and financially beneficial to all. Its exceptional billing platform, transparent value, and customer-centric approach make it the top choice for commercial solar energy. Armed with these features, King Energy is leading the clean energy movement, pioneering a program that creates upsides for property owners, tenants, and the environment.