Factors Affecting Economics

The following list includes most of the factors that should be considered when purchasing a small wind energy conversion system for home, business, or farm or ranch.

1. Load (power) and energy

Energy: Calculate by month or by day for small systems

2. Cost of energy from competing energy sources to meet need

3. Initial installed cost

Purchase price, shipping costs, installation costs (foundation, utility intertie, labor, etc.), cost of land (if needed)

4. Production of energy

Type(s) and size(s) of wind turbines

Warranty, company (reputation, past history, number of years in business, future prospects), reliability, availability Wind resource

Variations within a year, variations between years

5. Selling price of energy produced or unit worth of energy and anticipated energy cost changes (escalation) of competing sources

6. Operation and maintenance costs

General operation, ease of service, emergency services and repairs, insurance, infrastructure (are service personnel available locally?)

7. Cost of money (interest rate, fixed or variable)

8. Inflation (estimated for future years)

9. Legal fees (negotiation of contracts, titles, easements, permits)

10. Depreciation if system is a business expense

11. Any national or state incentives

Renewable Energy Eco Friendly

Renewable Energy Eco Friendly

Renewable energy is energy that is generated from sunlight, rain, tides, geothermal heat and wind. These sources are naturally and constantly replenished, which is why they are deemed as renewable.

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