Cost of Wind Energy
The cost wind energy begs at this point seems too high or too much of a hassle for most Americans, but if you think about it, a wind purchase really makes sense. Consider that, in the US, the average household uses over 10,000 kilowatts of electricity each year at an average cost of 10.7¢ per kilowatt hour. By contrast, residential wind power costs 10 to 11¢ per kilowatt hour or 4 to 7¢ per kilowatt hour for utility-scale turbine wind energy. In fact, one 10 KW wind turbine system running at 12 mph can generate 10,000 kilowatts of power per year. By making the switch to 100% alternative wind energy, each household would save 250 gallons of oil and 375 pounds of carbon dioxide emissions each year.
Wind speed is one factor for cost wind energy figures. For instance, one 51 mega-watt wind farm has wind speeds of 7.15 miles per hour blowing through the turbine wind energy blades at a cost of 6 cents per kilowatt hour. At a comparable farm with wind speeds of 9.32 miles per hour, the cost is only 26 cents per kilowatt hour. Also, the size of the local wind farm affects the price. For instance, the average 3 mega-watt farm delivers electricity at 59 cents per kilowatt hour, whereas a 51 mega-watt farm delivers it at just 36 cents per kilowatt hour, at a 40% decrease.
The cost wind energy estimates for commercial-scale wind turbines are still somewhat discouraging. Though they depend upon finance charges, purchase agreement, contractors, wind purchase design and location, the average price for a turbine wind energy project was between $1.2 million and $2.6 million per mega-watt in 2007. Most commercial-scale turbines were 2 mega-watts in size and cost $3.5 million to install. Some of the smaller farm or residential scale wind turbines at less than 100 kilowatts can cost between $3,000 and $5,000, so a 10 kilowatt machine needed to power an entire house would go from $35,000 to $50,000. However, federal and state government grants can pay for as much as 35% of the total purchase cost each.
Today, many utility companies are incorporating cost wind energy into their grid systems. Utility customers can opt for 10% of their electricity to come from turbine wind energy. In most cases, the added cost of this feature is just 2¢ per kilowatt hour or roughly $1.60 more per month. However, in a market like New York state, where the price of oil and other fossil fuels is considerably high, customers save $305 million per year by choosing the 10% alternative wind energy option on their bills. While economics should certainly be considered, many advocates of wind energy implore, “What price tag would you put on the planet?” As stewards of the earth, we must aim to leave the world a better place for our children.
