119 Windy Willows Dr.
Coraopolis, PA 15108
Phone (412) 264-6148
Fax (412) 264-6148
Mobile (412) 260 9620
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20 December 2008
Subject: Roof Top Wind Turbine Economics Estimate
INTRODUCTION
At a recent trade show a 2.2 kW wind turbine was being promoted as a opportunity for the deployment of home wind energy. This is packaged o be installed on a the roof of a home. Its out put appear to be inverter based.
Calculation were made in an effort to get and estimation utility rate that would provide cost recovery within an estimated turbine life of 15 years which is estimated to be a reasonable life expectance for this type of equipment.
DATA & ASSUMPTIONS
ITEM / VALUSTime period (YR) / 15.00
No of monthly periods / 180
Cost of Equipment / $6,900
Installation Cost as a percentage of the equipment costs / 10%
Installation Costs / $690
Total fixed costs / $7,590
Unit capacity (kw) / 2.2
Installed cost per kW max / $3450
Maintenance % as cost of equipment per year / 0.50000%
Maintenance Cost per mo. / $3
Utilityenergy cost ($/kW) / $0.272
Generated (kWh/yr) / 2000
Generated (kWh/mo) / 166.67
Discount rate/year / 5%
Disccount rate/mo / 0.417%
DETERMINATION OF THE AREA EPS RATE THAT WOULD ALLOW FOR COST RECOVERY OVER THE LIFE OF THE WIND TURBINE.
The calculations indicate that the cost recovery for the estimated investment of $7,590 could be accomplished if the utility rate was $0.272 per kWh and the unit could deliver an average of 2000 kWh. The calculation is base upon the premise that the Home Wind Turbine (HWT) would displace the energy the home owner would have purchased from the Area EPD had the HWT not been installed
The article indicated that value of 2000 represent the average residential usage. The maintenance cost was estimated to be about 0.5% of the installed cost. This is a rather low figure compared to fuel cells and solar photovoltaic systems. The installed costs of approximately of $3450 per kW is rather large when compared to conventional small portable generation. It may be slightly less than a comparable capacity of solar generation which ranges between $3000 and $ 8000 per kW.
This does not appear to be a very attractive rate of return. It will not encourage a large penetration unless there is a considerate annual subsidy.
If one uses a more practical Area EPS rate of $0.12 /kWh the time cost recovery period is about 24 years. This assessment does not take into consideration the equipment life may not be as long as 24years. In this calculation not estimate was made to account for any environmental credits and this market is not very mature.
Joe Koepfinger