Renewable Energy Adoption among SMEs: System Literature Review

Abstract

The transition to renewable energy is a critical component of global efforts to mitigate climate change, reduce reliance on fossil fuels, and advance sustainable development. Small and medium-sized enterprises, which make up the majority of businesses worldwide, play a central role in this transition due to their combined environmental impact and significant contribution to economic activity. Despite growing awareness of clean energy solutions, the rate of renewable energy adoption among small and medium-sized enterprises remains highly uneven across sectors and regions. This study conducts a systematic literature review of forty-three peer-reviewed articles published between 2014 and 2025 to examine the key factors influencing renewable energy adoption in this sector. The review identifies four primary motivators: long-term cost savings, energy reliability, environmental responsibility, and alignment with regulatory or market expectations. Major obstacles include limited financial capacity, high capital costs, technological complexity, and policy instability. The study also highlights the importance of mediating and moderating factors such as government support, leadership commitment, industry dynamics, and the involvement of external consultants. The findings emphasize the need for integrated policy frameworks and targeted support mechanisms to enable broader and more equitable participation of small and medium-sized enterprises in the global renewable energy transition.