You most likely know what wind power is and you are also aware that it can save you money. There are 3 indicators of economy of wind power – installed cost, electricity generated, and the cost of running the turbine. Keep these indicators at the back of your head as we take a look at some real savvy, smart ways of saving money with this green technology:
The Buying Process
Do not base your buying decision on the turbine’s power rating. Instead, ask for the rotor diameter. The rotor is located behind the blades and it enables the blades to cut through the air and generate electricity. The bigger the rotor diameter, the more electricity your wind turbine will generate. Wind turbines for homes can have rotors with a 100 feet diameter. Also, while calculating how much you will save, find out the rates you will be able to sell the electricity to the utility companies. You should also know that the prices of windmills are going down and so you must shop around. These tactics will help you save money even before you get started, and you will be happy to know that US households using wind power get their electricity bills reduced between 50% and 90%.
Tax Rebates
The American government offers tax incentives for home owners opting to install green energy power generators. The tax incentives are facilitated by the ARRA (American Recovery and Reinvestment Act). The first tax incentive is a Production Tax Credit, which saves 2.1 cents per kilowatt-hour on energy generated by reasonably-sized (utility scale) wind turbines. To qualify, the wind turbine should create enough energy for the whole community and not just for 1 household. The other tax incentive is Investment Tax Credit, which gets you 30% credit of the wind turbines cost. To avail of the second credit, you must produce the bills and a statement from the manufacturer that the turbine qualifies for a tax credit.
Build or Assemble the Wind Turbine
Installing a wind turbine is an expensive process. If you want to save money, you can install the whole wind turbine yourself, and it is not as difficult as you think it to be. The tools are easy to get and the instructions, complete with diagrams, are available as well. However, you should take into account the complexity of the turbine, its size, your technical skills, the time on your hands, and your experience in engineering projects before deciding to install the wind turbine yourself. If you can do it, it will save you a lot of money.
There are many eBooks available that can even help you build a wind turbine for less than $200 (plus the cost of the book, which is around $30)! A commercial grade turbine costs $20,000 or more, and if you’re just getting into the green energy arena, it makes sense to go with an eBook and start off with a small investment.
Buy a Low-maintenance Wind Turbine
Don’t buy an old model. The wind turbine technology is racing ahead and the wind turbines of today feature lesser number of moving parts, and therefore are low on maintenance. So, the lesson is to buy a new model that is created using the latest technologies. It may cost you slightly more, but will save you big on maintenance. Even while buying a modern turbine, inquire about how much repairs and maintenance it will need and buy a model that needs the least maintenance. All wind turbines need some maintenance and you must be ready for that if you want to save money.
Calculate The Opportunity Cost
Now, this is a weird tactic of saving money on wind energy! If it is electric bill saving that you’re after, you must calculate the opportunity cost. The cost of wind power includes investment, repairs, maintenance, and any other expense required to be paid to the electricity company (in case you are selling the energy). Deduct the unit’s estimated salvage value, energy sale revenue, and the tax credits. Now, divide the net cost by the total number of energy units that the wind turbine is expected to produce over a period (say, 3 years). Compare this rate with the rate charged by the electricity company to see if you are actually saving money. Invest only if your calculation shows that you are indeed saving some money. This opportunity cost comparison will not matter if you have anyway decided to go green.
This guest post is contributed by M.H, who is the editor of Alternative Energy Geek where he shares his knowledge about the renewable energy sources.
