Willingness to pay for electricity from renewable energy

National polls reveal widespread public preference and willingness to pay more for renewables. ``Green pricing`` programs attempt to capitalize on these preferences and on an expressed willingness to pay more for environmental protection. This report explores the utility option of green pricing as a method of aggregating public preferences for renewables. It summarizes national data on public preferences for renewables and willingness to pay (WTP) for electricity from renewable energy sources; examines utility market studies on WTP for renewables and green-pricing program features; critiques utility market research on green pricing; and discusses experiences with selected green-pricing programs. The report draws inferences for program design and future research. Given the limited experiences with the programs so far, the evidence suggests that programs in which customers pay a monthly premium for a specific renewable electricity product elicit a higher monthly financial commitment per customer than programs asking for contributions to unspecified future actions involving renewables. The experience with green-pricing programs is summarized and factors likely to affect customer participation are identified.