Consumers are unwillling to pay a premium for green goods in general, because such environmental benefits as cleaner air or water are difficult to immediately see, feel or experience. With renewable forms of power, the product itself is not seen. Also, because the renewable energy is simply added to the communal power grid in place of fossil fuel-generated electricity, consumers do not actually receive the product they pay the premium for. Secondly, many consumers lack awareness of exactly what types of energy are harnessed in producing the electricity coming into their homes right now much less the environmental issues associated with its production. Further, major misperceptions abound about renewable energy generation, e.g., electricity won't be available if the wind doesn't blow, renewable energy requires channelling a second set of power lines into homes, or tapping wind energy in a major way will somehow upset global climate patterns.
Credibility represents a third challenge.
They want to know precisely how funds will be used. To learn more about what it takes to effectively market renewable power, the U.S. Environmental Protection Agency's Atmospheric Pollution Prevention Division recently asked the author to research the market and conduct focus groups with potential green power customers. Only the greenest consumers are content with an opportunity for altruism. Mainstream consumers want to share in the perceived long term economic returns to the utility once the upfront costs to install renewables are paid off. The most willing customers for green power believe their purchases can make a difference.