Renewable Energy Procurement Perceptions among Commercial and Industrial Consumers: Current Practices and Future Possibilities

This research paper examines the challenges commercial and industrial (C&I) consumers face when procuring renewable energy (RE) and evaluates the acceptability of Green Tariffs (GTs) in India. Based on data from 101 corporate and 185 SME consumers across five states, the study finds a strong preference for on-site solutions and significant barriers to GT adoption, including low awareness and a lack of willingness to pay premiums.

• There is a strong preference for on-site renewable energy solutions among both small and medium enterprises (SMEs) and corporate C&I users. Large corporations show a higher preference for Open Access (OA) off-site projects due to their greater capital availability, larger energy requirements, and the ability to manage the procedural complexities associated with OA transactions.
• Awareness of Green Tariffs (GTs) is very low among C&I consumers, with up to 94 percent of SMEs and 82 percent of corporate consumers unaware of the concept. Those aware of GTs generally hold negative perceptions, citing concerns over the longevity of premiums, the certainty of 100 percent RE-based supply from distribution companies (DISCOMs), and RE additionality.
• A majority of surveyed consumers are unwilling to pay a premium for Green Tariffs, with 62 percent of corporate consumers and 55 percent of SME consumers refusing any premium. This indicates poor acceptability of premium-based GT models in India, although SMEs find GTs more welcoming than on-site or OA options because they avoid heavy capital investments and complex transactions.
• The paper recommends that state energy departments restructure GT models with lower premiums and fiscal incentives, while DISCOMs should act as promoters to prevent C&I consumers from leaving the grid. Specifically for SMEs, the paper suggests a demand aggregated model where the distribution utility aggregates demand from SME clusters to be met through RE supply.

APA

World Resources Institute (n.d.). Renewable Energy Procurement Perceptions among Commercial and Industrial Consumers: Current Practices and Future Possibilities. https://www.wri.org/research/renewable-energy-procurement-perceptions-among-commercial-and-industrial-consumers

Chicago

World Resources Institute. Renewable Energy Procurement Perceptions among Commercial and Industrial Consumers: Current Practices and Future Possibilities. n.d. https://www.wri.org/research/renewable-energy-procurement-perceptions-among-commercial-and-industrial-consumers.

Wikipedia

{{cite report |author=World Resources Institute |title=Renewable Energy Procurement Perceptions among Commercial and Industrial Consumers: Current Practices and Future Possibilities |url=https://www.wri.org/research/renewable-energy-procurement-perceptions-among-commercial-and-industrial-consumers |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendrenewable, author = {{World Resources Institute}}, title = {{Renewable Energy Procurement Perceptions among Commercial and Industrial Consumers: Current Practices and Future Possibilities}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/renewable-energy-procurement-perceptions-among-commercial-and-industrial-consumers}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }