The Micro, Small, and Medium Enterprises (MSMEs) in Thoothukudi district, Tamil Nadu, represent a dynamic and growing industrial ecosystem encompassing manufacturing, food processing, chemicals, and component production. However, high energy costs, environmental regulations, and the initiatives to reduce carbon emissions are driving these enterprises to reconsider conventional energy sources. This study examines the feasibility, effectiveness, and impact of integrating renewable energy solutions, particularly rooftop solar, wind energy, and hybrid systems, into the energy mix of MSMEs in Thoothukudi. Preliminary findings indicate that rooftop solar installations (10–100 kW scale) yield a payback period of approximately 4–6 years, aligning with observations from broader Indian MSME sectors in Industrial Automation Magazine. Furthermore, the adoption of hybrid models leveraging Thoothukudi's wind potential could enhance energy reliability and production stability. Despite financial and infrastructural constraints, government incentives like the PEACE energy audit subsidy and support through Energy Management Centres (EMCs) can significantly reduce upfront costs and support implementation.