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 Generating
Financial Return
Find the Incentives
Small wind energy systems
cost from $3,000 to $5,000 for every kilowatt of generating capacity,
or about $40,000 for a 10-kw installed system. This is much cheaper
than solar systems, but the payback period can still be lengthy.
That's why it's important to take advantage of rebates or tax
credits available for small wind system installations. Well-sited
small wind turbines can usually pay for themselves within 15 years,
about half their serviceable lifetimes, if the right incentives
are applied.
AWEA's state-by-state
pages provide information specific to buying and installing a
small wind turbine in each of several U.S. states, including the
availability of net
metering, local or state incentive programs, and utility incentives.
Information is also available at the Database
of State Incentives for Renewable Energy.
 The
Economics of Small Wind factsheet outlines the benefits to
installing a small wind system and is available within the Tools
You Can Use section.
The Economics of Small
Wind
Download
this document as a pdf (32k)
Size Up Your Situation
Small wind systems pay
off most consistently for rural homes and businesses with at least
an acre of property, Class
2 winds, and utility bills averaging at least $150 monthly.
Under these circumstances, a 10-kilowatt wind turbine mounted
on an 80-foot tower should generate an average of 1,000 kilowatt-hours
(kWh) monthly. With a net
metering arrangement, each kWh generated can be valued at
the retail electric rate charged by the utility, since that's
power you don't have to buy and may even be feeding back into
utility lines.
Residents with reasonable electric rates
will note that the payoff period can be lengthy. But the situation
may look better when you factor in state incentives. In California,
which offers a full range of rebates, state tax credits, and net
metering, turbine owners can recoup their investments in less
than 10 years¹,
enjoying free electricity for the next 20. That's a healthy, tax-free
return between 15 and 20 percent, depending on your electricity
use and wind strength.
The Numbers on Smaller
Systems
Smaller wind generators
with a 1-3 kilowatt capacity don't usually produce excess generation
and are often used to power specific applications such as water
pumps or recreational vehicle lights and appliances.
But the smaller turbines can still cut down energy bills. A 3-kW
turbine mounted on a 60 to 80-foot tower costs about $15,000,
including accessory components and batteries (if needed). A homeowner
spending $60-100 per month for electricity could knock 30-60 percent
off their bill, depending on the wind speed, tower height, and
price of electricity.
Systems smaller than 1 kW are often used in stand-alone applications,
or as part of a hybrid system with solar PV cells. A 400-watt
system can be installed for $1,500.
Wind Turbines Far
Cheaper than Utility Lines
The cost of extending
utility lines to a new home can cost as much as $20,000-30,000
per quarter mile. The same money could buy a renewable
energy system that will meet the electricity needs of an energy-efficient
home. Such a system typically combines a wind turbine with photovoltaic
panels, batteries, and a back-up generator. These systems avoid
a much large expense right off the bat -- the absence of utility
bills is an added benefit.
The Electric Power Research Institute suggests that in some areas
of the United States utilities would save money by removing under-used
transmission lines that are costly to maintain and serving loads
with hybrid stand-alone power systems instead.
For More Information
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