Wind Power Costs & Benefits
The return on your investment for wind turbine depends on several key factors:
- Where do you live? The wind speed at your site has the biggest impact on payback as the power out of a wind turbine is related to the cube of wind speed. Generally speaking, the further north and west you live, the higher the average wind speed.
- If your site has an average wind speed greater than 5.5m/s then your return can be greater than 10% per year. But be warned – put a turbine in the wrong place with low wind speeds, and your investment will probably never pay back as the cost of maintenance can exceed the value of electricity produced.
- What is the relative cost of your installation? Higher installed costs per kW means a longer payback. Include any grant funding in your net cost calculation.
- What is your current electricity tariff? The more you pay for your electricity means better returns from your wind turbine. And as energy prices increase, your return improves.
- For wind power, make sure that you obtain any available grant. These can be for as much as £2,500.
- Are you selling your excess electricity and renewable certificates? With sales tariffs of over 10p per kWh available, this can benefit your return.
Typical returns on investment for well sited small wind power systems range from around 5% to 15% per year depending on your average site wind speed. Payback is best in open rural upland areas.
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