Is a wind turbine a good investment for your site?
The profitability of a wind turbine depends primarily on three factors: wind resource (capacity factor), installation cost, and electricity price. Capacity factor — the percentage of maximum output actually achieved — ranges from 20-25% for small turbines in moderate wind to 45-55% for large offshore turbines. Onshore installation costs have fallen to $1,200-1,500/kW, while offshore is $2,500-4,500/kW. The Levelized Cost of Energy (LCOE) for onshore wind is now $0.03-$0.06/kWh — cheaper than any new fossil fuel plant. Annual maintenance costs are typically 2-3% of installation cost. Community wind projects allow individuals to invest in shared turbines, with typical returns of 7-12% annually. Landowners hosting turbines receive $3,000-$8,000/year per MW in lease payments. The UK's constraint payments sometimes pay wind farms NOT to generate, reaching £1 billion in 2023 — a contentious subsidy issue.