wind electricity: payback and incentives

The recovery of the investment on small residential wind turbines can be made in 10 to 15 years. But all depends on elements like wind resources or financial incentives.

The competitiveness of a small residential wind turbine - or the payback of the initial investment - depends on elements like...

- the wind resources;
- the available tax credits or...
- the stand-alone or on-grid nature of the system.

A case study

In a study involving a 15kW wind system, conducted in England by the University of Strathclyde, the payback was 13 years for a stand-alone system and 11 years for an on-grid system.

The initial cost was 46.500£ for the stand-alone system (wind turbine, battery and inverter) and 39.000£ for the grid connected system. The annual power output was 5.626 kWh/month, sufficient to the average needs of five to ten homes.

State incentives and grants to wind energy

USA

Small residential wind turbines, with a capacity up to 100 KW, can benefit from a tax credit equivalent to 30% of the cost of the investment. The wind system should be placed in service before 31 December 2016.

To look for incentives to wind energy systems in USA, see the State Initiatives for Renewable Energy database: DSIRE.

It includes information on state, local, utility and federal financial incentives to wind and renewables.

UK, Canada and Australia

For financial incentives in the United Kingdom, see: Renewables Obligation

For financial incentives to small wind systems in Canada, see: Canadian Wind Energy Association

For Australian issues concerning the wind energy, see: Department of Climate Change.