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Is Backyard Wind Power Worth It?

eldavojohn wonders: "In the October IEEE Spectrum magazine, I read an article on backyard windmills and their growing feasibility. With the lowest model's price tag, it's about $9,000 and lasts for around 100,000 kilowatt-hours (20 year life), which results in 9 cents per kilowatt-hour. Now, the article mentions that if the market takes off, that price will drop. However, I was wondering what price range the windmills would have to fall to (or the energy rates have to rise to) before I could consider this? Well, the price of the windmills in the article are out of my price range right now. I don't imagine many Americans have $8k-$11k laying around and the current month's rates for energy in my neighborhood are 2.2 cents/kWh for the first 800 kWh and 1.2 cents/kWh after. I was wondering what are your thoughts on being an early adopter of wind energy? Do you think that if enough people bought these windmills, the price per kWh could compete with the local power grid's? Will it ever?"

11 of 475 comments (clear)

  1. To avoid a few flamewars. by UbuntuDupe · · Score: 5, Interesting

    1) No, on a purely financial basis, it probably isn't worth it. (Saves the posts of people doing a detailed analysis.)

    2) Yes, it has the non-financial benefit of being earth-friendly, which isn't necessarily captured in a financial analysis. (Saves people from lecturing others that money isn't everything.)

    3) Yes, it would probably save you money if the appropriate goods were taxed to reflect their environmental costs. What the appropriate externality compensation would be depends on your ideology, so if you wanted people to use less fuel anyway, you probably think these costs are HUGE.

    4) Yes, we know that alone, windmills won't solve all energy problems. No one thinks that.

    5) Yes, some birds are killed from these. No one cares, since tall buildings kill a lot more.

    Does that about cover it?

  2. 1.2/2.2 c/kwh???? by bloosqr · · Score: 5, Informative

    Are you sure you are reading your bill correctly? Are you in canada or something? I think i pay about 13 c / kwh

    here is a list of average prices around the US

    http://www.eia.doe.gov/cneaf/electricity/epm/table 5_6_a.html ,,

    1/2 is the distribution cost and 1/2 is the generation cost..(this is only matters if you choose a different energy provider as all you can save is the generation cost .. the distribution cost is fixed) .. if you are making energy on site you save on both since they aren't distributing that power to you...

  3. They need to make more "noise" by ExE122 · · Score: 4, Interesting
    I was wondering what are your thoughts on being an early adopter of wind energy? Do you think that if enough people bought these windmills, the price per kWh could compete with the local power grid's? Will it ever?

    With rising energy costs, global warming, and environmental concerns, I think the answer to your final question is a resounding "maybe".

    This same energy-conservation trend has shown itself in hybrid vehicles. The first hybrids were priced almost twice the cost of regular vehicles. So people doing the math and asking themselves the same questions you are about wind power. However, as popularity grew and more hybrid vehicle models became available, the prices became more competitive. Even the government has gotten involved in many areas by offering tax cuts, toll leniencies, and access to restricted lanes as incentives. While many people would argue that it still isn't cost-effective to purchase a hybrid, there have been over a million sold.

    I think there are other benefits that can be said about windmills. I remember reading a report once which showed that minor improvements to homes (new paint, adding walk-in closets, new windows) increased sale prices by way more than was invested. How much more could you get for a house when you tell a potential buyer that their electricity bill will be 20-90% less other homes because of the big fan in the backyard? I'm willing to bet it would sell for at least $10k more in most areas.

    So returning to your second question, I think the outcome of windmills will indeed be determined by their popularity. If they catch on, I think production will diversify and the government will get involved to offer incentives. However, the article itself says "the SkyStream turbine is not meant to wean you from the grid completely".

    --
    "A man is asked if he is wise or not. He replies that he is otherwise" ~Mao Zedong
    --
    Capitalism: When it uses the carrot, it's called democracy. When it uses the stick, it's called fascism.
  4. Re:Not the way you described it. by TykeClone · · Score: 4, Informative

    Is .02/KWH right? I just got my bill today and saw that I was billed an "energy cost" of 0.029/kwh for all power over the month + between 2.6 cents and 8.5 cents per kwh depending upon the date (summer/"winter" billing). If my real cost per unit of power is between 5 cents and 10 cents, it's not quite as much of a stretch for spending $9000 on a small windmill. I think that the power company has been taking lessons from the telephone company in producing their billing statements.

    --
    A fine is a tax you pay for doing wrong and a tax is a fine you pay for doing all right.
  5. Re:Is it also worth the drama? by dgatwood · · Score: 4, Insightful

    This is why we need law changes to prevent homeowners' associations from having so much power over individual properties. It's okay for them to require you to pay into a communal pool for maintenance of shared resources, but beyond that, your home is your castle, and no one should have the right to tell you what you can and cannot do to it, public health and safety laws notwithstanding.

    --

    Check out my sci-fi/humor trilogy at PatriotsBooks.

  6. Re:Is it also worth the drama? by CastrTroy · · Score: 4, Insightful

    I think the problem stems from the fact that too many people view their now not only as a home, but also as a financial investment. They're worried that if you paint your garage door flourescent green, then you will bring down the value of their house. I can see their point of view, but a house should not be there just to make money. Buy a house that you like, not one that you think will gain the most value in 3 years so you can sell it and upgrade.

    --

    Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
  7. Re:Solar panels by demigod · · Score: 5, Interesting

    A windmill is too big and too much of an eyesore to be installed in backyards.

    They don't have to be eyesores.

    --
    "The last thing I want to do is deal with a bunch of people who want something."
    Major Major
  8. Hooking to the grid can cost $$ by garyebickford · · Score: 5, Informative
    If the grid isn't already in place, it can be very cost effective to adopt energy independence. Two scenarios in real life:

    1. Someone I know lives on 50-odd acres; his house is about 1/2 mile from the road. As I understand it, the power company quoted him $18,000 to run power poles from the road to his house. Of course, this upfront cost was just for the opportunity to send them money every month thereafter. For that same $18,000 he bought a complete power system including a bunch of special batteries, high tech electronic load and generation management and a diesel generator. I think the generator and batteries came from folks who had installed Y2K panic systems, and never used them. For several years he ran the generator once a week for a couple of hours, now he's installed two solar panels and he has gone all summer without running the diesel, though he will probably have to run it occasionaly during the winter. He has a small wind generator for testing, so far. His major electricity usage is shop tools and clothes dryer. He uses propane for hot water, and propane and wood for heat. He plans more solar panels eventually, and will then use the diesel only for emergencies.

    2. According to the World Bank, small amorphous silicon solar panels are replacing kerosene lamps in rural African villages - they cost about the same as two months' worth of kerosene, provide more light than the kerosene lamps previously used, and once paid for cost nothing to run, except amortized cost of replacement every ??? years. This also offers the opportunity to radically change lifestyles in these areas. Evidently amorphous silicon panels are less efficient than the more expensive solar panels but are so much cheaper that they're a better deal. I can easily foresee several families in a village connecting their panels and batteries together, and voila! Instant community power grid, that can grow incrementally.

    For the large percentage of people who live outside areas that already have well-developed electric power and other networks, localized community-based or individualized solutions including wind, solar and small hydro can be very practical, and even life changing. This paper notes that:
    "Off-grid renewable energy investments are cheaper when communities and individuals can build and operate electricity generation facilities without going through regional governments and utilities. In Nepal systems under 1 MW do not need approval for off-grid development. This has played a critical role in helping local micro-hydro entrepreneurs set a tariff which is acceptable to the community being serviced as well as being profitable to the entrepreneur running the micro-hydro plant"
    --
    It's easier to be a result of the past, but more fun to be a cause of the future! http://www.spacefinancegroup.com/
  9. Re:Then sell your home by sumdumass · · Score: 4, Insightful

    Sure and we can use this type of thinking to our advantage too. Our home owners association already has stuff in place to keep the poor out. We have rules not particulaly faviorable to blacks unless they are the type who conform to the uncle tom versions of blackness. We have been able to keep the mexicans out and we are working on the jews and extreamly religous christians. I also think some rules are even hostile to foreigners. Of course it was hard to keep the irish and germans out because they adapt so easily but we got that covered too.

    So yea, if you don't like it, leave. And we can justify all our positions based on property values and value to potential buyers willing to spend the most money.

    Seriously, there are some things a little more important then value of investments. Other people's implied values shouldn't be used as reasoning for limiting someone elses freedoms.

    (note, that was a fictional acount but i can easily see how inocent looking rules could work that way. thats the purpose of the home owners association, keeping undesirables out and property values high.)

  10. Re:Solar panels by LordVader717 · · Score: 4, Interesting

    I can't understand the people who complain about windmills being an eyesore. Sure, they're noticable, like just about any other structure. But they're also a reminder of our thirst for energy, and a symbol of our civilisation. They're something we should be proud of
    I have seen much mor offending things than a few windmills in the scenery

    I suppose they'd complain about these too.

  11. 9 cents/kwh? DId nobody take math in school? by btempleton · · Score: 4, Insightful

    I'm being mean here but there are deliberate blinders going on here, making the vendor, the IEEE spectrum writer and the Slashdot editor forget basic math. The vendor's motive, I understand, but there is no excluse for IEEE writers and slashdot people.

    $9,000 for 100,000 khw over 20 years is NOT 9 cents/kwh. Why? Anybody with a mortgage knows that money paid over time is vastly different from money today. The unit presumably delivers 5,000 khw per year or about 13.7 khw per day. So at 7% interest, that's 16.7 cents/kwh, which is more than just round-off error.

    And frankly, for the vendor to say it's 9 cents is very close to fraud. The power plants don't amortize without considering the time value of money when they work out the costs.

    Another way to think about it. Put the $9,000 in the stock market. Historical rate of return is about 10%. That means you would pull out $900 per year -- while still keeping the principal intact, except for inflation. At California's 13 cents/khw from the grid, that buys you 6900khw, assuming the price stays even. Your wind turnbine gets you only 5000khw. It doesn't pay for itself in 20 years, it never, ever pays for itself, no matter how long it lasts. And you still have the principal when you are done.

    I'm all for renewable energy. But I hate it when people also for renewable energy either get stupid or just plain lie to make it seem better than it is.

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    Has it been over a year since you last donated to the Electronic Frontier Foundation