System Benefit/Cost Examples

Examples of the Benefits and Costs of a Hummer Wind Turbine System

The examples below are for informational purposes only. The examples are intended to provide a general idea of how a Hummer wind turbine can be a wise investment. Please keep in mind that each site (even within the same state, county or city) is different in terms of actual wind speeds, installation costs, permitting fees, incentive programs, etc.

Financial benefits:

• Wind power is not subject to utility price increases

• Wind power offers access to various federal, state, local and utility grants, rebates and/or tax credits

• Installing a small wind turbine employs a local installation team

Other benefits that are of a non-financial nature:

• Wind power is a non-polluting energy source

• Wind power does not create the green house gases that cause global warming

• Wind power is a visible statement of a commitment to sustainability

• Wind power allows greater personal energy independence and personal control of energy needs

• Wind power is not subject to the risks associated with foreign oil supply

Example 1: Northeast Colorado

Example 2: Central Wisconsin

Example 3: West Texas

Example 1: Northeast Colorado

You live near Julesburg, CO and you have a 5kW Hummer Wind Turbine installed on a 100 Ft tall tower. The average wind speed in the area (at a height of 100 Ft) is 12 mph.

At this average wind speed, the estimated Annual Energy Output (AEO) from the Hummer wind turbine is 8,700 kWh per year. You are currently paying $0.10 per kWh from your local utility thus your estimated annual utility cost saving is $870 per year.

The initial total cost to install this system is approximately $29,400 (including all material, permitting and installation costs).

However, you qualify for the United States Federal Government Residential Renewable Energy Tax Credit which allows you to deduct 30% of the total installation cost (after factoring any local or state grants).

You also qualify for a grant/rebate equal to $3 per kW (up to a $9,000 maximum rebate amount) of rated power from the local energy cooperative. This equates to a $9,000 grant/rebate on your installation.

Therefore, the final total installed cost is $14,280 (after considering the tax credit(s) and grant(s)/rebate(s) you qualify for).

This equates to an annual return on investment (ROI) of 6% per year and results in a 17 year payback on your investment.

Total Cost to Customer
Annual ROI
Payback

$14,280
6%
17 years

Click Estimate My ROI if you want to estimate the Benefits and Costs of a Hummer Wind Turbine at your site?

Example 2: Central Wisconsin

You live near Fon du Lac, WI and you have a 3kW Hummer Wind Turbine installed on an 80 Ft tall tower. The average wind speed in the area (at a height of 80 Ft) is 10 mph.

At this average wind speed, the estimated Annual Energy Output (AEO) from the Hummer wind turbine is 3,500 kWh per year. You are currently paying $0.12 per kWh from your local utility thus your estimated annual utility cost saving is $420 per year.

The initial total cost to install this system is approximately $21,000 (including all material, permitting and installation costs).

You also qualify for a grant/rebate equal to 25% of the installed cost (up to a $10,000 maximum rebate amount) from the local energy cooperative. This equates to a $5,250 grant/rebate on your installation.

Therefore, the final total installed cost is $11,025 (after considering the tax credit(s) and grant(s)/rebate(s) you qualify for).

This equates to an annual return on investment (ROI) of 4% per year and results in a 25 year payback on your investment.

Total Cost to Customer
Annual ROI
Payback

$12,025
4%
25 years

Click Estimate My ROI if you want to estimate the Benefits and Costs of a Hummer Wind Turbine at your site?

Example 3: West Texas

You live near Amarillo, TX and you have a 10kW Hummer Wind Turbine installed on an 120 Ft tall tower. The average wind speed in the area (at a height of 120 Ft) is 13 mph.

At this average wind speed, the estimated Annual Energy Output (AEO) from the Hummer wind turbine is 13,200 kWh per year. You are currently paying $0.13 per kWh from your local utility thus your estimated annual utility cost saving is $1,716 per year.

The initial total cost to install this system is approximately $45,000 (including all material, permitting and installation costs).

Therefore, the final total installed cost is $31,500 (after considering the tax credit(s) and grant(s)/rebate(s) you qualify for).

This equates to an annual return on investment (ROI) of 5.5% per year and results in a 18 year payback on your investment.

Total Cost to Customer
Annual ROI
Payback

$31,500
5.5%
18 years

Click Estimate My ROI if you want to estimate the Benefits and Costs of a Hummer Wind Turbine at your site?

Information Sources:

Energy Information Administration
Average Retail Price of Electricity to Ultimate Customers
http://www.eia.doe.gov/cneaf/electricity/epm/table5_6_a.html

Database of State Incentives for Renewable Energy (DSIRE)
www.dsireusa.org

Wind Powering America
http://www.windpoweringamerica.gov/wind_maps.asp

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