Why Energy Independence Is Economic Independence

Energy independence is economic independence because energy is one of the few costs every household, government office, and enterprise pays every month, and most of that money leaves the community. A Nation that produces some of its own power keeps more of those dollars, steadies its costs, and can earn revenue by selling power or leasing land for projects. It also gains bargaining power with the utilities and developers it deals with. How much of that value stays with the Nation depends on how its projects are structured, from leasing land to owning the project outright.

Where does a Nation's energy money go?

For most Tribal Nations, power is bought from an outside utility at rates set elsewhere. Every bill paid by a household, clinic, casino, or Tribal office sends money off the reservation, and rising rates squeeze budgets the Nation doesn't control.

The burden falls hardest on families. Native American households spend a 45 percent larger share of their income on energy than white non-Hispanic households, according to a 2020 study by the American Council for an Energy-Efficient Economy, which used federal data reflecting 2017 conditions. Energy costs that high compete directly with food, housing, and everything else a family needs.

The broader question of how a Nation reduces its dependence on any single source of money is the subject of the pillar on economic independence. Energy is one of the clearest places to apply it.

How does producing power change the economics?

Producing power changes a Nation's economics in three ways.

The first is lower and steadier costs. Power from a Nation's own solar array or other generation can cost less over its life than power bought from the utility, and its cost is known years in advance. Blue Lake Rancheria in California, for example, reports that its microgrid saves the Tribe about $200,000 a year in energy costs, according to the U.S. Department of Energy.

The second is revenue. A Nation with strong solar, wind, or other resources can sell power to utilities and large buyers, or lease land to developers who do. The third is bargaining power: a Nation with its own power options negotiates with utilities and developers as a supplier, not only as a customer, and can weigh offers against alternatives.

Lease, partner, or own?

The structure of a project decides how much of the value stays with the Nation.

The Moapa Band of Paiutes offers a well-documented example of the lease model. The 250-megawatt Moapa Southern Paiute Solar Project, on about 2,000 acres of the Moapa River Indian Reservation in Nevada, became operational in 2017. It was the first large-scale solar project to receive construction approval on Tribal land in North America, according to the Federal Highway Administration's project profile, and it sells its power to the Los Angeles Department of Water and Power under a 25-year agreement. The project generates millions of dollars for the Tribe through lease payments, consulting fees, and local purchases of goods and services. A developer financed and owns the plant; the Tribe earns income from its land with little financial risk.

The trade-off runs along a range. Leasing land brings steady income with little capital or risk, but most of the project's value goes to its owner. Partnering, through a joint venture or minority stake, shares more of the value and more of the risk. Owning a project outright keeps the most value and control, and requires the most capital, expertise, and tolerance for risk. A Nation can move along the range over time, often starting with a lease or partnership and owning more as its experience grows. The path from knowing a Nation's resources to controlling its own utility is laid out in What Is Tribal Energy Sovereignty?

What are the limits?

Energy projects need capital, a buyer for the power, and a connection to the grid, and each can take years to secure. Transmission lines are often far from Tribal lands, and interconnection queues can be long. Federal incentives that helped finance many projects also changed in 2025, when new tax law ended credits for wind and solar projects that start construction after July 4, 2026, unless they are placed in service by the end of 2027. Every project depends on the Nation's own resources, partners, and advisers, and some won't pencil out.

Where does venture capital fit?

The technologies that make energy projects cheaper and more flexible, including batteries, grid controls, and software that helps sell power, are being built by young companies. A Nation that owns part of those companies shares in the growth of the industry it will be buying from, the shift described in the pillar on ownership in the future economy.

Native Capital invests through one Fund with two engines: commitments to a curated set of venture funds and direct investments in high-growth companies. Each engine is a sleeve: a separate allocation inside the one Fund, with its own strategy and reporting. Its target sectors include energy, infrastructure, and climate resilience.

What a Nation gains

Producing and owning energy lets a Nation keep more of its energy dollars at home, steady its costs, earn revenue from its resources, and negotiate from strength. Choosing deliberately between leasing, partnering, and owning decides how much of that value stays with the Nation. Venture returns are uncertain and take years to arrive, and an investment in energy technology adds ownership in the industry alongside the Nation's own projects.

If your council or utility team is weighing energy projects or ownership models, send us a message about a Venture 101 session, or request the investor deck.

Sources

• American Council for an Energy-Efficient Economy, "Report: Low-Income Households, Communities of Color Face High 'Energy Burden' Entering Recession," September 10, 2020.
• U.S. Department of Energy, Office of Indian Energy Policy and Programs, "Tribal Microgrids Support Tenuous Lifelines During Grid Shutdowns," October 8, 2021.
• Federal Highway Administration, Center for Innovative Finance Support, "Moapa Solar Project" project profile.
• Internal Revenue Service, Notice 2025-42, beginning of construction for wind and solar facilities, August 15, 2025.