What does it Cost?

Renewable Energy Projects can take many forms and are motivated by many factors. For some, the ultimate goal is to install a system that will produce all of the electricity that their home or business uses, and thereby reduce their household or business Carbon Footprint. For others, it is to offset some portion of their electric bill while protecting themselves from future electric rate increases that may alter their retirement plans. Renewable Energy Projects represent a significant initial investment. Understanding what has motivated you to investigate Renewable Energy will make a difference when you decide if the investment is “worth it” for your household or business.

What does it cost?

That is like asking “what does a car cost”. First you need to determine your requirements. How big, how fancy, what kind of options, how powerful, how long do you want it to last. You can buy a sub-compact KIA for under $9000, or you can buy a Bentley for $200,000.
 
With Renewable Energy Systems, the questions are: how much electricity do you use per month, how much are you willing to conserve, what portion of your total usage do you want to produce, how much sun or wind does your house get, and is your home oriented to take advantage of solar energy.
 
Can you get Solar or Wind Energy system for under $9000? Probably not. Do you have to spend $200,000? Probably not. The Solar Energy Industry Association and the American Solar Energy Society both state that the initial cost of a Solar Photovoltaic System is $8,000 to $10,000 per rated Kilowatt, and that the average Residential installation in the US is 1.5 to 2.5 KW. This translates to $15,000 to $25,000 for the “average” system, before rebates and incentives are applied.
The American Wind Industry Association statistics show that residential and small commercial Wind Energy Systems are less expensive per rated Kilowatt. Initial start-up costs can be as low as $4000 per KW, depending on the average wind speed at your site. Wind speeds can vary greatly within a few city blocks, so an accurate site evaluation is essential.

Wind System Cost Example

There are three parts to a Wind Energy System: the Turbine, the Mounting System and the Installation. The Turbine is priced based on the Kilowat/Hour production, and Small Wind turbines designed for Residential use are available in sizes from 500 watt (.5Kw) to 10 KW.  In general these turbines are in the $4,000 to $7,000 per KW range for systems with integrates inverters, compared to $8,000 to $10,000 per kilowatt for Solar PV Systems.
The Mounting Systems come in three types:

1. Free Standing Towers, called Mono-Poles
2. Guyed pole and lattice towers
3. Direct roof-mounted systems.

The price will depend on which type of mounting system it is, and how tall it is.
Installation will depend on the type and height of the tower, the site conditions and access, and the soil bearing type.  Installation costs also include required Engineering Analysis of the soil type, the engineering of the size of the concrete foundation, and Building and Electrical permits. These fees also vary greatly depending on what jurisdiction you live in.