Wind Power Payback Period
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The wind power payback period for any residential
wind system is determined by these five variables:
1. Wind speed at your location.
2. Tower height.
3. System cost - including installation.
4. State tax credits.
5. How much you pay per kWh for electricity.
wind system is determined by these five variables:
1. Wind speed at your location.
2. Tower height.
3. System cost - including installation.
4. State tax credits.
5. How much you pay per kWh for electricity.
When you consider the five factors, wind speed is the most important. Higher average
wind speeds generate more electricity. The more you reduce your electric bill, the quicker
the wind turbine will pay for itself.
A 20 foot increase in tower height, from 60 to 80 feet, can increase the output of your
wind turbine by as much as 36% and decrease the payback period by the same amount.
The cost to install a wind power system depends on how much of the prep work you, and
possibly some friends, can contribute. As a rule of thumb, every $1,000 you save in
installation costs will reduce the payback period by 5-10%. If you're not a diy person,
estimate an additional 50-80% of the cost of the components for professional installation.
Tax credits for residential wind power are offered on a state by state basis and range
from $1,000 - $1,500.
At present there is no Federal tax credit for residential wind power. The Federal
production tax credit (PTC) is only applicable to utility-scale wind turbines, not smaller
turbines used to power individual homes or businesses.
Generally speaking, any homeowner paying less than $0.09 per kWh (kilowatt hour) for
electricity is not a good candidate for wind power.
The following chart estimates the cost for a complete Skystream 3.7 wind power system.
This is a grid-tied system, which means the electricity generated by the turbine goes
directly to your home. Grid-tied systems do not incorporate battery storage. I've chosen
the Skystream 3.7 because it's one of the top five selling micro wind turbines.
wind speeds generate more electricity. The more you reduce your electric bill, the quicker
the wind turbine will pay for itself.
A 20 foot increase in tower height, from 60 to 80 feet, can increase the output of your
wind turbine by as much as 36% and decrease the payback period by the same amount.
The cost to install a wind power system depends on how much of the prep work you, and
possibly some friends, can contribute. As a rule of thumb, every $1,000 you save in
installation costs will reduce the payback period by 5-10%. If you're not a diy person,
estimate an additional 50-80% of the cost of the components for professional installation.
Tax credits for residential wind power are offered on a state by state basis and range
from $1,000 - $1,500.
At present there is no Federal tax credit for residential wind power. The Federal
production tax credit (PTC) is only applicable to utility-scale wind turbines, not smaller
turbines used to power individual homes or businesses.
Generally speaking, any homeowner paying less than $0.09 per kWh (kilowatt hour) for
electricity is not a good candidate for wind power.
The following chart estimates the cost for a complete Skystream 3.7 wind power system.
This is a grid-tied system, which means the electricity generated by the turbine goes
directly to your home. Grid-tied systems do not incorporate battery storage. I've chosen
the Skystream 3.7 because it's one of the top five selling micro wind turbines.
Alternative-Heating-Info.com
| Skystream 3.7 Wind Turbine |
Skystream 3.7 payback period
Most manufacturers use an average wind speed of 12 mph to illustrate estimated power
output. According to the monthly kWh production chart provided by Southwest Wind
Power, an average wind speed of 12 mph will generate 400 kWh per month. At $0.15
per kWh, this would mean savings of $60/mo, or $720 annually.
This translates to a 16-19 year payback period. However, the same system operating at
an average wind speed of 16 mph would generate 600 kWh per month for an annual
savings of $1,080; reducing the payback period by 6 years.
The payback estimate doesn't take into account the potential cash flow benefit of net
metering - the sale of unused power back to the grid. Everything you earn from net
metering will help shorten the payback period.
The amount you save on future rate increases will equal the percentage of your home's
total power usage provided by the wind turbine. For instance, if the wind turbine
generates 70% of your household power, you would save 70% of the increase.
Homeowners who install residential wind power systems, much like their solar
counterparts, have a long term strategy for reducing energy consumption coupled with
strong environmental concerns.
Most manufacturers use an average wind speed of 12 mph to illustrate estimated power
output. According to the monthly kWh production chart provided by Southwest Wind
Power, an average wind speed of 12 mph will generate 400 kWh per month. At $0.15
per kWh, this would mean savings of $60/mo, or $720 annually.
This translates to a 16-19 year payback period. However, the same system operating at
an average wind speed of 16 mph would generate 600 kWh per month for an annual
savings of $1,080; reducing the payback period by 6 years.
The payback estimate doesn't take into account the potential cash flow benefit of net
metering - the sale of unused power back to the grid. Everything you earn from net
metering will help shorten the payback period.
The amount you save on future rate increases will equal the percentage of your home's
total power usage provided by the wind turbine. For instance, if the wind turbine
generates 70% of your household power, you would save 70% of the increase.
Homeowners who install residential wind power systems, much like their solar
counterparts, have a long term strategy for reducing energy consumption coupled with
strong environmental concerns.
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| Raising Assembled Components w/Crane |