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. Federal and 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. Federal and 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.
A 30% tax credit is currently available from the Federal government until December 31,
2016 for residential small wind energy systems. Additional rebates or energy tax credits
may also be available from your state.
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 shows a breakdown of individual costs associated with the purchase
and installation of a Skystream 3.7 wind power system. The system was installed by the
home owner and does not include the cost of labor. A professionally installed system
would add $2,000 - $5000 to the cost of parts and materials as shown below.
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.
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.
A 30% tax credit is currently available from the Federal government until December 31,
2016 for residential small wind energy systems. Additional rebates or energy tax credits
may also be available from your state.
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 shows a breakdown of individual costs associated with the purchase
and installation of a Skystream 3.7 wind power system. The system was installed by the
home owner and does not include the cost of labor. A professionally installed system
would add $2,000 - $5000 to the cost of parts and materials as shown below.
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.
Alternative-Heating-Info.com
| Skystream 3.7 Wind Turbine |
| Raising A 33' Monopole Tower |
Skystream 3.7 payback period
According to Southwest Windpower, the Skystream should generate 350kW of power
per month in wind speeds averaging 12 mph. At $0.15 per kWh for example, savings of
$52.50/mo, or $630 annually would be realized. Dividing the net cost of $9,036 by $630
in annual savings yields a 14 year payback.
Higher average wind speeds would shorten the payback period while lower wind speeds
would lengthen it. Likewise, if you pay more than the example $0.15/kWh for electricity
the payback period would shorten - less than $0.15/kWh and it would lengthen.
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) or inflated future energy costs.
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.
According to Southwest Windpower, the Skystream should generate 350kW of power
per month in wind speeds averaging 12 mph. At $0.15 per kWh for example, savings of
$52.50/mo, or $630 annually would be realized. Dividing the net cost of $9,036 by $630
in annual savings yields a 14 year payback.
Higher average wind speeds would shorten the payback period while lower wind speeds
would lengthen it. Likewise, if you pay more than the example $0.15/kWh for electricity
the payback period would shorten - less than $0.15/kWh and it would lengthen.
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) or inflated future energy costs.
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.
Parts/Materials
Skystream 3.7 Turbine
Wireless Remote
USB Convertor Kit
45' Monopole Tower
Shipping
35amp shutoff switch
20amp double pole breaker
Dedicated 100amp meter box for turbine
Dedicated 100amp electromagnetic meter
110' 8-3 with ground wire
50' of 1.5" electrical conduit and fittings
Township zoning height variance hearing
Township zoning permit
County electrical permit
First Energy interconnection agreement
First Energy meter replacement
Foundation/Bolt Kit
Pad Foundation/install
Crane
Trencher rental
Parts/Materials
Estimated Additional Labor Cost
Total
Federal Tax Credit 30%
Massachusetts State Rebate
(Check for rebate programs in your state)
Net Cost After Rebates
Skystream 3.7 Turbine
Wireless Remote
USB Convertor Kit
45' Monopole Tower
Shipping
35amp shutoff switch
20amp double pole breaker
Dedicated 100amp meter box for turbine
Dedicated 100amp electromagnetic meter
110' 8-3 with ground wire
50' of 1.5" electrical conduit and fittings
Township zoning height variance hearing
Township zoning permit
County electrical permit
First Energy interconnection agreement
First Energy meter replacement
Foundation/Bolt Kit
Pad Foundation/install
Crane
Trencher rental
Parts/Materials
Estimated Additional Labor Cost
Total
Federal Tax Credit 30%
Massachusetts State Rebate
(Check for rebate programs in your state)
Net Cost After Rebates
- 5400.00
335.00
99.00
3700.00
450.00
40.00
4.00
40.00
99.00
220.00
80.00
150.00
35.00
60.00
250.00
300.00
350.00
3000.00
400.00
75.00
$15,087.00
$3,000
$18,087.00
($5,426.00)
($3,625.00)
$9,036.00