Cost of Wind Power

How do you determine the cost ?

The cost of wind power associated with small wind projects, in regards to homes and farms, can vary based on several pieces of information.  You need to have an estimate of the wind resources at your location, tower height required, the turbine model’s power demands, the installation and the hidden costs, like insurance and maintenance.The primary equipment cost of wind power is the turbine, which is mounted on top of a tower, and a controller that controls the power output from the turbine. To store and generate power, you may also need a generator and battery packs, depending on the use of your project.

If you are on utilities now, you can determine the amount of power you have been consuming to get an idea of the size of wind power system you will need. If you plan to supplement your normal utilities to cut utility bills, you would have smaller costs involved upfront, but would still need to consider that you would be paying a utility bill.  Some potential wind power users consider systems that not only can supply them, but can sell the excess energy to the utility or grid supplier.

Once you have determined these factors, other things to consider are any incentives offered by your utility company, how much they will pay you for any excess power you “sell” to them, and any tax credits or grants available, and then you can subtract these items from your cost.

To determine the cost of wind power, you have to also analyze the savings in utility bills, along with any credits to be subtracted from the upfront costs.  This will help you determine the payback on your investment, and how long it will take to recoup the initial investment. It is really important to make sure your home is as energy efficient as possible before you spend the money on a home wind generator system. By using good insulatiion, sealing windows and doors, and making sure you are doing what you can to save energy, the final costs of an alternative energy system will make more financial sense.  To learn more about what you can do to "tighten up" your home and save electricity click here.    

Depending on the type of wind power system you decide on, you may find that the cost of wind power is minimal, after taking incentives, rebates and tax credits into account.  In general, you could figure that a smaller wind power system could cost from $3000 to $6000 for every kilowatt of generating power, and could run up to $40,000 for a system large enough to power a home, depending on your location and whether you construct your own system or purchase a kit.

A wind power system typically cuts a household electricity bill by 50% to 90%, and depending on the location and system, maybe 100%.  Energy conservation is less than production, so you will want to be sure your home or farm is energy efficient, to reduce the size of system necessary, which can also save initial cost of wind power.

You have to look at a wind power system as an investment in controlling future costs, as well, since you won’t be subject to unpredictable utility rates, and many wind power users see an increase in the value of their property as well.  When you factor in potential cost savings and the property value increase, wind power is a good alternative energy source, and one that can make your farm or home self sufficient.

In general, a wind power system will take six to fifteen years to recoup the investment through utility savings, so this is where incentives, grants and tax credits can cut the time to recoup costs dramatically.

Return from the Cost of Wind Power page to the Home page.