The Cost of Wind Energy

The cost wind energy differential is relatively minor these days, since technology and innovation have driven down prices by 90% in the past two decades. A modern residential wind turbine can lower electric bills by 50 to 90% in most parts of the country. Some homes in the scorching hot south that run 100% off sources wind energy provides have monthly bills of $8 to $15 for nine months of the year, not including the summer months. Homes in the north with year-round modest temperatures will see year-round low energy bills. However, these are just estimates, as there are many factors that go into how expensive (or inexpensive) your alternative wind energy will be.

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.

A secondary factor for cost wind energy estimates is the advances in technology. Since the eighties, generators wind power manufacturers have realized that the taller a turbine tower is, the better the output, as wind speeds increase with distance from the ground. Also, just by increasing the rotor diameter from 10 meters to 50 meters, there was a 55% increase in productivity. A modern day 1.65 mega-watt turbine can generate 120 times the output of the older 25 kilo-watt turbines from the eighties, for example.

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.