Small Businesses Ask Customers to Foot Renewable Energy Bill

July 9, 2008 - A San Francisco engineering firm is charging clients an extra 0.05% to support its purchase of renewable energy credits - one of a number of small businesses that are looking to customers for help in financing their low-carbon efforts, the Wall Street Journal reports.

Sherwood Design Engineers has cut its energy use by conducting meetings online to avoid business travel and encouraging employees to turn their equipment off at night. But to make a bigger impact, the firm purchases carbon offsets - and adding a surcharge their bills to help pay for it.

This firm is not alone in its approach, the Wall Street Journal notes. Increasingly, companies are finding that customers are willing to pay a premium for green or socially responsible services. Customers do not seem to mind paying the fee if they know their charge is going to help the environment, the companies say.

So far, none of Sherwood Design Engineers' customers have balked at the fee, according to CEO Bry Sarte. "I'm not sure this would have worked a few years ago," he says. "I think they would feel too guilty."

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