Harnessing Nature’s Power

This report by the World Resources Institute provides a comprehensive guide for U.S. businesses on the deployment and financing of on-site renewable energy systems, including solar photovoltaic, solar thermal, wind, and geothermal heat pumps. It details the economic and financial benefits, various ownership and financing models, and the associated risks and objectives for corporate energy management.

• Certain on-site renewable energy technologies, specifically large-scale wind power, solar thermal water heating, and geothermal heat pumps, are already economically competitive with traditional fossil fuel energy sources.
• Companies can reduce energy costs through 'peak shaving,' which involves producing renewable energy during periods of peak power use when utilities typically charge higher rates; solar photovoltaic systems are noted as having high peak-shaving potential.
• On-site renewable energy can improve energy reliability and provide back-up power during grid interruptions, provided the system includes energy storage such as batteries.
• The report identifies four primary deployment models: Direct Ownership (Use of Power), Direct Ownership (No Power Use), Third-Party Ownership (Use of Power), and Third-Party Ownership (No Power Use).
• Direct ownership of renewable assets allows companies to benefit from federal and state incentives, such as the 30% federal investment tax credit for solar technologies and small commercial wind, but requires the company to have sufficient 'tax appetite' (taxable income).
• Third-party ownership models, such as Solar Power Purchase Agreements (PPAs), allow companies to benefit from renewable energy and indirect tax incentives without making a significant initial capital commitment.
• Direct Ownership (No Power Use) is currently uncommon due to regulatory disincentives like net metering limitations, but could grow if governments adopt 'feed-in tariffs' that guarantee minimum electricity tariffs.
• The report outlines several risks associated with on-site deployment: dispatch risk (power not generated), operational risk (system underperformance), technology risk (opportunity cost from newer tech), transfer risk (moving locations), and impact on credit metrics.
• To claim the use of 'green power' for brand enhancement, a company must retain the Renewable Energy Certificates (RECs); selling RECs to improve project economics forfeits the right to make such claims.
• The report highlights the use of 'brownfield' sites—real property complicated by hazardous substances—as viable locations for renewable energy, termed 'brightfields.'

APA

Hassett, T. C., & Borgerson, K. L. (n.d.). Harnessing Nature’s Power. World Resources Institute. https://files.wri.org/d8/s3fs-public/pdf/harnessing_natures_power.pdf

Chicago

Hassett, Timothy C., and Karin L. Borgerson. Harnessing Nature’s Power. World Resources Institute, n.d. https://files.wri.org/d8/s3fs-public/pdf/harnessing_natures_power.pdf.

Wikipedia

{{cite report |last1=Hassett |first1=Timothy C. |last2=Borgerson |first2=Karin L. |title=Harnessing Nature’s Power |publisher=World Resources Institute |url=https://files.wri.org/d8/s3fs-public/pdf/harnessing_natures_power.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{hassettndharnessing, author = {Hassett, Timothy C. and Borgerson, Karin L.}, title = {{Harnessing Nature’s Power}}, institution = {World Resources Institute}, url = {https://files.wri.org/d8/s3fs-public/pdf/harnessing_natures_power.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }