Cost, Benefit, and Return On Investment for Residential Wind Energy Systems

Homeowners today are looking towards alternative energy sources such as residential wind energy systems to reduce or eliminate utility bills. The problems for most of us is finding wind turbine suppliers and figuring out exactly what a residential wind energy system will cost and how much money we will save from eliminating utility bills. This article will address both, the cost of a wind energy system for your home as well as the savings and projected return on investment. There are many factors to consider when deciding to implement a residential wind energy system and wind turbine suppliers can help you choose the right wind energy system. For homeowners that wish to go completely off grid a generator is a good idea but for those who want to stay connected you can explore the energy buy back programs offered by some utility companies. Staying connected and selling the excess wind energy back to the utility company can be a great way to help recover some of the initial cost involved with your home wind energy system. We will cover everything you need to know including the list of items needed to complete your home wind energy system installation. You will also find links for wind turbine suppliers in the link section.

The average home uses approximately 800kwh per month. This amount varies a great deal based on size and number of people living in the home. Less energy used each month will mean the less cost when buying and installing your home wind energy system. The larger the system the higher the cost. To produce 800kwh each month you will need a residential wind turbine rated between 5 and 10kw to yield sufficient electricity to power your home completely. You can find many brands available on the market and in various price ranges. A typical home wind energy system rated at 5kw can cost between $5,000 and $10,000 depending on wind turbine suppliers, quality and installation choices. These dollar amounts include the required components for a completely self sufficient residential wind energy system. The average cost of electricity in the US as of April 2009 was about 12 cents per kwh or roughly $100 per month. With this in mind it would take approximately 5 – 8 years to recover the total cost of your home wind energy system. There are ways that a homeowner can reduce their monthly use which in turn would require less wind energy production. This would mean lower initial cost for a wind energy system that could sustain your home. If a homeowner uses energy efficient products and reduces their monthly energy use by 25% they could save thousands o the initial cost of a wind energy system. Another way to recover the costs is to sell the excess energy produced back to utility providers. Wind turbine suppliers can give you additional information on these programs. The US has programs in place which require utility providers to purchase certain types of alternative energy from homeowners. The Federal and State Governments also have rebate and incentive programs to help with some of the costs involved with home wind energy systems. According to the US Department of Energy “Consumers who install solar energy systems (including solar water heating and solar electric systems), small wind systems, geothermal heat pumps, and residential fuel cell and microturbine systems can receive a 30% tax credit for systems placed in service before December 31, 2016”. The previous tax credit cap of $1500 no longer applies. This is a huge benefit and can obviously mean a much quicker return on investment.

1: Wind Turbine or Turbines to produce between 5 and 10 kw. Wind turbine suppliers can calculate your exact requirements.

2: Tower to mount the turbine, most wind turbines include a tower but you may need a taller one fr your installation.

3: Charge Controller, some wind turbines come with this component.

4: Deep cycle batteries to store the electricity until it is needed.

5: Power inverter to convert the wind energy into electricity suitable for home use.

Installing a small residential wind energy system will initially cost approximately $7500 if we go with averages for energy use, production, installation, and equipment costs. Many wind turbine suppliers have various models and price ranges to choose from. Some of the wind turbine suppliers may even have rebates available. The US Government will give you credit for 30% of that which is $2250. Yearly savings from eliminating electric bills is $1200. Your initial investment of $7500 reduced by first year savings of almost $3500 leaves you with an initial cost of about $4000 for your ow residential wind energy system. That means it will take about another 3 to 3 ½ years to recover the rest of your investment. According to leading wind turbine suppliers, the expected usage life of home wind energy systems is 20 years or more. I would say this makes for a pretty good investment and it is great for the environment.