Indian customers prepared to pay higher price for renewable electricity

Facebook
Twitter
LinkedIn
Reddit
Email

In a revelation that will shock India’s rapidly-growing solar industry, a survey from Mercom Capital Group has shown that just 56% of Indian consumers have heard of renewable energy. The investigation by the global clean energy consulting and communications firm, which surveyed more than 500 commercial, residential and rural consumers in India, also highlighted that only 27% have heard of energy efficiency.

However, despite these startling revelations, Mercom’s survey has uncovered some good news. Namely, that consumers are willing to pay more for uninterrupted power and the opportunity to use renewable energy; 71% are willing to pay higher rates for electricity from renewable energy sources, while 65% value uninterrupted power enough to pay extra.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

These findings will help dispel the misconception at government level in India that the public are unwilling to pay more for electricity. This belief has been behind a reluctance by state governments to raise power prices, which has led to decreased revenue among the power utilities, huge losses, continued power cuts and lack of financial resources to invest in power projects and infrastructure.

And, despite the general population’s ignorance to renewables, Mercom’s investigation offers further encouragement to India’s renewable energy sector and, in particular, policies such as the Jawaharlal Nehru National Solar Mission. Solar is particularly high on the agenda and the national government hopes to increase solar capacity to 20GW by 2022. It is targeting 1,100 MW under the mission's first phase.

“Policies are implemented from the top down without any input or buy-in from consumers,” said Mercom’s  Raj Prabhu. “There seems to be a general lack of education and awareness among consumers on these issues. How do you expect consumers to support and adopt renewable energy if they don’t understand what it is? Energy efficiency tends to cost a fraction compared to new supply but unless consumers are educated about these programs the adoption will be slow and ineffective.”

Read Next

September 15, 2025
Advances in edge-based artificial intelligence are helping make solar and storage interoperable by tackling the data challenge, writes Andrew Foster.
September 15, 2025
Italy’s latest renewable energy tender has received 12GW of bids, of which the majority, 10GW, came from solar PV.
September 15, 2025
Sunrun has priced a securitisation of leases and power purchase agreements, taking its non-recourse debt capital raised in Q3 above US$1.5 billion. 
September 15, 2025
Norwegian energy firm Statkraft has agreed to divest a portion of its renewable energy portfolio to Serentica Renewables.
September 15, 2025
UNSW spin-out company Lab360 Solar has been awarded funding from ARENA to bring its drone-based PV inspection technology to market.
Premium
September 15, 2025
The UK government and solar industry have jointly published a long-anticipated roadmap detailing how to maximise the country’s solar potential. Chris Hewett, CEO of Solar Energy UK takes a closer look at the details.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines