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We should point out, however, that a wind energy system could also make sense for other reasons. It may make sense for environmental reasons. It may also become a fun hobby that pays a little. Or, it may be your contribution to the ever-growing industry or to creating a better future for your children, the rest of humanity and the many species that share this planet with us.
As a rule, the decision to install a wind energy system is based on a combination of factors. In this chapter, we’ll focus on economics of wind systems, never losing track of other reasons.
If the economics of a wind system is your primary focus, the decision to invest time and money on a system hinges on three factors: (1) your electrical energy requirements — how many kilowatthours of electricity you need, (2) the number of kilowatt-hours of electricity a wind turbine could produce at your site, and (3) the cost of supplying electricity from a wind system versus other sources, for example, the local utility, or other renewable energy technologies, such as solar electricity. As you shall see, several factors help to make small wind an economically viable — or even profitable — venture. They include: (1) high electricity rates, (2) rebates or tax credits from utilities or governments, (3) a good wind resource, and (4) a long-term perspective.
To begin, you first need to determine your electrical demand. This will tell you how much electricity you’ll need to generate from your system.
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