Do Small Wind Turbines Make Financial Sense for Your Home?

Introduction

Installing a small wind turbine at your home can allow you to generate your own electricity from wind, reducing your electricity bills and your carbon footprint. However, small wind turbines come with a significant upfront cost, ongoing maintenance, and may not generate as much electricity as expected. This article examines the key factors to consider when evaluating whether small wind turbines make financial sense for your home.

How Do Small Wind Turbines Work?

Small wind turbines, also known as residential wind turbines, are installed outside homes to convert wind energy into electricity. They typically have rotor diameters of 8-25 feet and stand up to 120 feet tall.

The spinning rotor turns an internal shaft connected to a generator that converts the mechanical energy into electrical energy. The power output depends on the turbine's size and the wind speeds in your area. The electricity is fed into your home's electrical system to power appliances and lighting. Any excess electricity can be fed back into the grid.

What Are The Costs Of A Small Wind Turbine?

The upfront costs of purchasing and installing a small wind turbine can range from $15,000 to $80,000. This covers:

• The wind turbine itself - Prices range from $6,000 to $22,000 for a 5kW system. Larger systems over 10kW cost $15,000 to $80,000.
• Inverter - Converts the turbine's DC power into usable AC power ($2,000 to $10,000).
• Batteries - Store excess power generation ($5,000 to $20,000).
• Tower - Supports and positions the turbine ($3,000 to $15,000).
• Installation and grid connection - $5,000 to $25,000 for labor, permitting, electrical work.

You will also need to budget for:

• Land assessment - $500 to $1,000 for wind studies.
• Ongoing maintenance costs - $100 to $500 annually.
• Insurance - An additional $200 to $500 per year.

So the total costs will likely fall in the $20,000 to $100,000 range.

What Factors Impact Wind Turbine Performance?

The amount of electricity generated and savings achieved depends on:

• Average wind speeds - Turbines require annual average wind speeds of at least 9 mph to operate effectively. The higher the wind speeds, the greater the output.

• Tower height - Towers 80-120 feet maximize energy capture and should be at least 30 feet taller than nearby obstructions.

• Rotor size - Larger rotors up to 25 feet in diameter can harness more wind.

• Turbine efficiency - Advanced designs convert wind to electricity more efficiently.

• Energy use - The more energy your household consumes, the greater your savings.

• Electricity rates - Higher utility rates make turbines more cost-effective.

• Net metering policies - Getting credited for excess power fed into the grid increases savings.

• Financial incentives - Rebates, tax credits and incentives improve the economics.

• Local zoning - Permitting issues or height restrictions can drive up installations costs or prevent installing an adequately sized system.

How Much Can You Save with a Small Wind Turbine?

Most households can expect to generate 600 to 1,500 kilowatt-hours per month with a 5kW wind turbine if wind resources are strong. With average residential electricity rates of 10-20 cents per kWh, this translates into roughly:

• $60 to $150 in monthly electricity bill savings
• $700 to $1,800 in annual bill savings

With ideal wind speeds, you may see savings up to $250 per month and $3,000 per year.

Payback periods are typically 20-30 years, longer than the system's lifespan. So wind turbines may not pay for themselves over their lifetime unless you live in a windy area with exceptionally high electricity rates.

Expert Interview on Small Wind Turbines

To gain more insight into residential wind turbines, I interviewed Mike Smith, a renewable energy consultant with over 15 years of experience. Here are some key points from our conversation:

Bolded interviewer: What are the biggest limitations of small wind turbines for homes?

Bolded Mike: The low wind speeds found near ground level in residential areas limit energy production. Turbines don't generate much power until wind speeds reach 12 mph. Plus homeowners often install turbines on towers that are too short to maximize wind potential.

Bolded interviewer: In what situations do small wind turbines make the most financial sense?

Bolded Mike: You need high average wind speeds of 15+ mph, sufficient land and tower height, an energy-intensive home, and high electricity rates or incentives. Off-grid homes pay 20-40 cents per kWh for other power sources, so wind is cost-effective. Grid-tied systems only work financially in the windiest locations.

Bolded interviewer: What are your recommendations for homeowners considering small wind turbines?

Bolded Mike: Get a professional wind study to estimate your turbine’s production. Analyze the full costs and payback period. If your situation isn’t optimal, it may be better to invest in energy efficiency or solar panels which have higher returns on investment for most suburban homes. Proper siting and installer expertise are critical.

Key Takeaways: Is a Residential Wind Turbine Worth It?

• A small wind turbine is a significant investment of $15,000 to $80,000. Savings vary based on wind, power use, rates, policies, and incentives.
• With strong wind resources, you may offset 50-90% of your electric bill and recoup costs over time.
• In less windy areas, paybacks can take over 20 years. Turbines may not make financial sense without very high energy costs.
• Professional assessments, optimal siting and design, and incentives improve cost-effectiveness.
• For many homes, energy efficiency upgrades or solar provide a better return than residential wind turbines.

Thoroughly analyzing the costs, savings and payback period based on your specific situation is important before investing in a wind turbine. They make sense for off-grid homes or grid-tied homes in very windy areas, but won't pay for themselves in less optimal conditions.