As urbanization accelerates, cities face mounting challenges: rising pollution, congestion, and energy demands that surpass traditional sources. Yet, amid these challenges lies an immense opportunity—profiting from renewable energy. Businesses are discovering lucrative models in solar, wind, and emerging green technologies, not only reducing environmental impact but also generating significant revenue streams. At New Polis we have previously explored the rising demand and expanding supply in the renewable energy sector, highlighting key trends and market dynamics. Now we will focus on practical solutions for business in cities.
Renewable energy: a profitable urban opportunity
Urban areas are among the world’s largest energy consumers, driving the need for cleaner, more sustainable solutions. According to the International Renewable Energy Agency (IRENA), global renewable energy capacity reached 4,448 gigawatts (GW) in 2024, and investments are projected to grow by 50% by 2025. By 2030, the International Energy Agency (IEA) predicts renewables will account for 60% of global electricity production.
This transition presents a golden opportunity for businesses to capitalize on renewable energy while cutting costs and enhancing sustainability. But how exactly can companies profit?
Solar power: turning sunlight into revenue
Solar power is one of the most accessible renewable energy sources for businesses. Companies can leverage multiple solar solutions tailored to their needs:
- Rooftop solar: Maximizes unused roof space, reducing energy expenses.
- Ground-mounted systems: Ideal for businesses with available land, ensuring maximum solar exposure.
- Solar carports: Combines parking infrastructure with power generation.
- Solar battery storage: Stores excess energy for peak demand, reducing electricity costs.
Major corporations like Google and Apple have invested heavily in solar energy, powering operations with 100% renewable sources.
Cities like Los Angeles, with around 280 sunny days a year, are integrating solar power into policies such as the Green New Deal, making it an affordable and profitable option for businesses.
Financial models like power purchase agreements (PPAs) allow companies to buy solar energy at a lower fixed rate with no upfront investment, while solar leases offer fixed monthly payments for equipment use. Solar loans, on the other hand, enable businesses to own their solar systems, unlocking tax benefits and incentives.
Wind energy: capturing profits from the air
While wind power is often associated with rural landscapes, urban wind turbines are gaining traction in cities with large buildings and open spaces. Copenhagen is a prime example, where urban wind turbines power local communities and feed into the national grid. Denmark’s share of wind energy in electricity consumption has surged from 20% in 2010 to 50% in 2022.
Wind energy companies generate revenue through PPAs, wholesale market sales, and government incentives like tax credits and grants. Additional profits can come from renewable energy certificates (RECs), manufacturing and servicing wind turbines. Businesses can also participate in wind cooperatives, investing in urban wind farms and earning returns from energy sales. This model fosters local support and enhances green branding.
Emerging renewable energy sources: beyond solar and wind
While solar and wind dominate, businesses can further profit from emerging renewable technologies such as geothermal, biomass, and hydrogen energy.
- Geothermal energy: Cities like Reykjavik, Iceland, and California’s Geysers geothermal field harness underground heat to generate electricity. Businesses can profit by selling geothermal power, offering heating solutions, and providing drilling services.
- Biomass: Organic waste conversion into energy is a growing sector. Cities like Oslo use biomass-powered district heating plants, providing businesses opportunities in waste-to-energy projects, fuel production, and consulting services.
- Hydrogen power: Fuel cells produce clean electricity, with cities like London and Hamburg leading hydrogen infrastructure developments by using hydrogen-powered buses . Companies profit by producing hydrogen, manufacturing fuel cells, and developing storage technologies.
Investing in urban renewable energy projects
Beyond direct energy production, businesses can profit by investing in large-scale urban renewable projects. Opportunities include:
- Public-private partnerships (PPPs): Cities like Singapore and Barcelona collaborate with businesses to expand renewable infrastructure. Singapore’s SolarNova program allows companies to install solar panels on public buildings and profit from energy sales.
- Community energy investment: Businesses finance solar cooperatives in cities like London, generating energy for residents while sharing profits.
- Energy storage solutions: Investing in large-scale battery storage enables businesses to store surplus solar or wind power and sell it during peak demand. Tesla’s Powerpack technology is already being used to monetize stored renewable energy.
Conclusion: on the way to profiting from renewable energy
Profiting from renewable energy isn’t just about sustainability—it’s a smart financial move. Businesses adopting renewables lower their energy bills, gain energy independence, and attract eco-conscious consumers. Government incentives such as tax credits, feed-in tariffs, and grants further enhance profitability.
The shift toward renewable energy is inevitable—and profitable. From rooftop solar installations and urban wind projects to geothermal and hydrogen investments, businesses have countless opportunities to capitalize on the clean energy revolution.
For companies looking to secure long-term financial gains while aligning with sustainability goals, the time to act is now. Profiting from renewable energy isn’t just an environmental choice—it’s a strategic business move with immense growth potential in an increasingly green economy.
