Wind Turbine Profit Calculator

Wind turbine economics revolve around a few key parameters. The rated capacity is the maximum power output the turbine can produce under ideal wind conditions (typically at wind speeds of 12-15 m/s). However, wind does not blow at rated speed constantly, so actual output is always less than rated capacity. Capacity factor is the ratio of actual energy produced to the theoretical maximum if the turbine ran at rated capacity continuously. Onshore wind turbines typically achieve capacity factors of 25-45%, depending on the wind resource. Excellent onshore sites may reach 40-50%. Offshore wind farms can achieve 45-55% due to stronger, more consistent winds. Annual energy production (AEP) is the fundamental metric: AEP = rated capacity * capacity factor * 8760 hours/year. A 10 kW turbine with a 30% capacity factor produces 10 * 0.30 * 8760 = 26,280 kWh per year. Revenue depends on how the energy is valued. For grid-tied systems, energy may be valued at the retail electricity rate (net metering) or a lower feed-in tariff rate. For off-grid systems, the value equals the cost of alternative generation (usually diesel generators at $0.25-0.50/kWh). Installation costs for small wind turbines (1-10 kW) typically range from $3,000-7,000 per kW installed. Utility-scale turbines (2-5 MW) cost $1,200-1,800 per kW. Total cost includes the turbine, tower, foundation, electrical connections, permitting, and installation labor. Simple payback period divides total cost by annual revenue. A more sophisticated analysis would include maintenance costs (typically 1-3% of installation cost annually), inflation, discount rates, and potential incentives (tax credits, rebates). The US federal Investment Tax Credit (ITC) can reduce effective cost by 30%, dramatically shortening payback. Wind speed is the dominant factor determining project viability. Power in wind increases with the cube of wind speed, so a site with 7 m/s average wind has 2.7 times the energy potential of a site with 5 m/s average wind. Minimum average wind speed for economic viability is generally 5-6 m/s at hub height.