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Title: Willingness to Pay for Renewable Electricity: A Review of Utility Market Research

Abstract

As competition in the electric utility industry has become more widespread and federal legislation deregulating the utility industry more likely, utilities have become more concerned about actions they can take to help ensure the loyalty of their customers. National polls have, for 20 years, found majority preferences for renewable energy over other energy sources. This issue brief compiles and analyzes recent market research conducted by utility companies on customer interest in and willingness to pay for renewable electricity. Findings in the areas examined in this review are: Customers are favorable toward renewable sources of electricity, although they know little about them; Solar and wind are the most favored sources of electricity generation; Majorities of 52% to nearly 100% of residential customers said they were willing to pay at least a modest amount more per month on their electric bills for green power; their responses follow a predictable curve showing that percentages willing to pay more decline as cost increases. The residential market for green pricing is approximately 2% near program rollout at a $5/month price increment, and should increase slowly but steadily over time; Customers may view with favor, and be more willing to purchase electricity from, utilities that providemore » green power.« less

Authors:
Publication Date:
Research Org.:
National Renewable Energy Lab., Golden, CO (US)
Sponsoring Org.:
US Department of Energy (US)
OSTI Identifier:
12156
Report Number(s):
NREL/TP-550-26148
TRN: US200312%%157
DOE Contract Number:  
AC36-99GO10337
Resource Type:
Technical Report
Resource Relation:
Other Information: Supercedes report DE00012156; PBD: 9 Sep 1999; PBD: 9 Sep 1999
Country of Publication:
United States
Language:
English
Subject:
29 ENERGY PLANNING, POLICY AND ECONOMY; 32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION; 54 ENVIRONMENTAL SCIENCES; ELECTRICITY; ENERGY SOURCES; LEGISLATION; MARKET; PRICES; ENVIRONMENTAL POLICY; RENEWABLE ENERGY SOURCES; GREEN POWER; RENEWABLE ENERGY; MARKET RESEARCH; WILLINGNESS TO PAY

Citation Formats

Farhar, B. C. Willingness to Pay for Renewable Electricity: A Review of Utility Market Research. United States: N. p., 1999. Web. doi:10.2172/12156.
Farhar, B. C. Willingness to Pay for Renewable Electricity: A Review of Utility Market Research. United States. doi:10.2172/12156.
Farhar, B. C. Thu . "Willingness to Pay for Renewable Electricity: A Review of Utility Market Research". United States. doi:10.2172/12156. https://www.osti.gov/servlets/purl/12156.
@article{osti_12156,
title = {Willingness to Pay for Renewable Electricity: A Review of Utility Market Research},
author = {Farhar, B. C.},
abstractNote = {As competition in the electric utility industry has become more widespread and federal legislation deregulating the utility industry more likely, utilities have become more concerned about actions they can take to help ensure the loyalty of their customers. National polls have, for 20 years, found majority preferences for renewable energy over other energy sources. This issue brief compiles and analyzes recent market research conducted by utility companies on customer interest in and willingness to pay for renewable electricity. Findings in the areas examined in this review are: Customers are favorable toward renewable sources of electricity, although they know little about them; Solar and wind are the most favored sources of electricity generation; Majorities of 52% to nearly 100% of residential customers said they were willing to pay at least a modest amount more per month on their electric bills for green power; their responses follow a predictable curve showing that percentages willing to pay more decline as cost increases. The residential market for green pricing is approximately 2% near program rollout at a $5/month price increment, and should increase slowly but steadily over time; Customers may view with favor, and be more willing to purchase electricity from, utilities that provide green power.},
doi = {10.2172/12156},
journal = {},
number = ,
volume = ,
place = {United States},
year = {1999},
month = {9}
}

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