Liquid fossil fuel is anticipated to run out by the mid-2060s. The destruction of land, water, and air due to fossil fuel use contributes to environmental degradation. Policymakers, scientists, and researchers are looking into power generation from renewable sources, such as wind and solar energy, because of the threat of climate change owing to global warming brought on by greenhouse gas emissions. Although there have been substantial advancements in the use of large-scale wind turbines for power generation, small-scale wind turbines, which have the potential for solo power generation, have not received wider acceptance yet due to their lower-than-expected power generation performance. This study’s main goal is to analyse the limitations of harnessing wind energy by small-scale wind turbines for power generation in built-up areas for residential and commercial uses. The study focuses on the difficulties and potential of generating electric power from small wind turbines in urban settings. The state of wind characteristics in built-up areas, economic viability, aerodynamic limitations, and governmental regulations for small-scale wind turbines are also discussed.