Sunday, January 25, 2015

Payback period of domestic wind turbine system

Wind energy is often being touted as clean and environmentally friendly form of renewable energy, the one that can help clean our environment and protect us from various environmental issues such as climate change. However, when installing wind turbines people are not only interested in going green but they also want to know more about the total needed investment and how to calculate the payback period for the installation of domestic wind turbine systems.

As the global population continues the demand for energy continues to rise. The main problem with this is, of course, that currently our energy needs are being met through the processing and burning of coal, oil and other fossil fuels. There are two main drawback of our dependence on fossil fuels, for one they are present in limited quantities, and eventually will become exhausted and the second reason is that they are hurting our environment, mostly in form of harmful greenhouse gas emissions that cause climate change and air pollution.

It is no wonder that many countries in the world tend to change their existing infrastructure in order to make the switch to more renewable power in their energy grid.

The first thing when doing the calculation of payback period is to know how much money you are planning to spend on the purchase and installation of your wind turbine system. The best way to achieve lowest installation costs is to look online and contact some local dealers to learn how much it will cost to buy and install a desired wind turbine system at your home.

There are several different factors you should take into account here –these include size, total energy output and construction and transport costs. You can run this analysis on several different wind turbines in order to determine if one is a better deal than the other. Obtaining the information on the cost and the energy production of a wind turbine is a necessary first step in order to calculate the payback period.

In some cases there are available government incentive programs for installation of wind turbines on your property, so it is worthwhile to check with a local dealer to make sure whether you can obtain certain incentives or not. If there are available rebates or tax incentives, then you are able to subtract whatever money you get back from your initial cost expenditures.

The starting expenses needed for the installation of your wind turbine system minus any incentives you might get is your cost for the first year. To calculate saving for the second and next year you need to know the total output of your wind turbine system. To get a plausible estimate, take somewhere around 70% of that number and then multiply your expected energy output by the cost per kWh from your bill. This will show you how much money you can expect to save.

For most people, their initial investment is recouped in between seven and ten years. Since wind turbines have an average lifespan of 20+ years you can save plenty of money on the long run by installing domestic wind turbine system.

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