No value is placed on the public benefits of renewables. Many of the benefits of renewables, such as reduced pollution and greater energy diversity, are not reflected in market prices, thus eliminating much of the incentive for consumers to switch to these technologies. Other market barriers. Lack of information by customers, institutional barriers, the small size and high transaction costs of many renewables, high financing costs, split incentives among those who make energy decisions and those who bear the costs, and high transmission costs can also be barriers to renewables development. Green Market Limits.
Surveys show that many customers are willing to pay more for renewables.
Pilot programs have shown promising results, with some commercial customers choosing renewables, though in smaller numbers than residential customers. The most optimistic green marketers expect that 20 percent of residential customers and 10 percent of commercial customers will choose green suppliers within five years of customer choice.