Wind Turbines for the home, the Economic Case

[drbubb]

EXCERPT...

 

First Update, April 2006

Since I wrote the original article, energy prices have risen tremendously. The growing worldwide shortage of fossil fuel (see The End of Oil Conference) has driven up wholesale energy prices, causing domestic electricity bills to rise as well.

 

These changes have made the economic case for domestic wind turbines even more compelling. Below is an updated calculation to reflect today's energy bills. I have no doubt that energy prices will continue to rise.

 

Cost of grid electricity (First Update)

 

Our domestic electricity bill in Spring 2006 charged the following:

 

Electricity consumption over 69 days : 524 kWHr

Charge rate: 9.05 p/kWHr = ....................... Cost : £47.42

 

Fixed service charge (daily rate) : 14.79 p/day

Fixed service charge (total)................................. : £10.21

Total cost of electricity ....................................... : £57.63

Total cost of electricity including VAT at 5% .......... : £60.51

 

Actual unit cost of electricity = £60.51 / 524kWHr = 11.5p/kWHr

 

This represents an incredible 28% rise in electricity prices, in one year!

 

Comparison of grid versus domestic wind turbine (First Update)

 

The economic case is now even more compelling. Grid electricity costs 11.5p/kWHr, against 8.4p/kWHr for electricity generated by domestic wind power. In other words, electricity generated by domestic wind power costs just three-quarters the cost of grid electricity.

 

Conclusion (First Update)

 

Domestic wind turbines are clearly a hot topic, and understandably so in our age of rising energy prices. As electricity becomes ever more expensive, I anticipate more and more people will switch to wind power.

 

I plan to issue a revised calculation when energy prices have risen further. In the meantime, if you'd like to make more detailed calculations on the payback time for wind power, please read my article on The Economics of Going Off-Grid, where you'll find a spreadsheet to help you carry out the calculation. Finally, as always, please do contact me with your comments or questions.

 

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