Economics of grid-connected small wind turbines in the domestic market

Abstract

Exploitation of certain niche markets for small wind turbines is one strategy that could help speed the commercialization of grid-connected small turbines. The authors review the world's turbine manufacturers, the utility grid-connected applications and selected niche markets for grid-connected small wind systems (0.1 to 100 kilowatts). Wind turbine installation and purchase are handled under three different payment scenarios: paid in full up front, paid through a second mortgage, or paid as part of a first mortgage. The authors used a simple payback method to compare these scenarios and analyze the costs and energy produced for three different U.S. small wind turbines. When there is a buy-down program for the small wind turbine combined with other financial factors such as net metering, tax exemptions, and tax credits, a strong market incentive is created for the use of grid-connected small wind turbines.