King Energy secures $10M for rooftop solar financing model | Utility Dive

Oct 22, 2024

The company installs solar panels on unused roof space, providing commercial property owners with a “simple, no-nonsense way” to trim operational costs and carbon footprints, CEO John Witchel said.

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Local laws and corporate sustainability targets are increasing the importance of renewable energy for building owners and facility managers. The split incentive gap, where landlords and developers foot the bill for energy efficiency upgrades while tenants benefit from lower energy costs, remains a key barrier to decarbonizing buildings, according to a road map by the Sustainable Markets Initiative’s Sustainable Buildings Transition Hub.

King Energy’s OneBill platform delivers to customers a consolidated monthly energy bill combining tenants' on-site solar and utility-supplied electricity charges, according to the release.

Combining the billing platform with project financing, solar installation and long-term management allows King Energy to serve as “a single source solar partner that adds material financial value to commercial properties,” the company said. This approach allows businesses to reduce both operational costs and carbon footprints without the upfront expenses or complexities typically associated with solar power, per the release.

King Energy manages nearly 200 energy programs at multitenant commercial properties, serving more than 25 million square feet of tenant space,the release said. The company has worked with more than 2,000 businesses across nine states, according to its website.Neighborhood shopping centers and large commercial facilities like distribution centers and warehouses have shown the strongest demand to date, Witchel said.

The new funding includes $7 million from ArcTern Ventures and $3 million from Blackhorn Ventures, Active Impact Investments and Next Frontier Capital, King Energy said. The investment will fuel the company’s expansion across North America, supporting scaling of its operations, hiring and technology enhancements, per the release.

“Our near-term focus is in New Jersey, Maryland, New York, Massachusetts, and Illinois, among other [states],” Witchel said. “These are all states with successful community solar programs.”

The company’s approach is similar to strategies employed by other energy-as-a-service companies like Budderfly. That company takes over tenants’ utility bills and implements energy-efficiency upgrades to properties, such as installing solar panels, at no cost to owners. It earns profits on the difference between baseline energy bills and the lower usage it is able to achieve through property upgrades.

Budderfly recently announced that it is projected to reach nearly $200 million in annual recurring revenue in 2024, driven by a 72% increase in energy under management across nearly 7,000 sites.