As we are searching for renewable energy sources to help out our environment, the cost is a huge factor that determines whether or not the energy is worth generating.
Wind energy is a great renewable energy source, and you will likely see wind farms when you drive through areas with lots of open space.
Determining whether an energy source is profitable, it’s necessary to know how much it costs and how much it brings in. In terms of wind energy, how much does it cost to set up a wind farm, and how much money does one wind turbine make in one year.
Depending on the location, wind farms can be highly profitable.
Every area might not see the same results because they don’t receive as much wind, but wind farms should be able to pay for themselves after time in most cases.
How Much Does One Wind Turbine Cost?
Multiple costs need to be considered when purchasing a wind turbine.
There is the cost of the turbine itself, delivery, set up, and maintenance.
On average, one wind turbine will cost between $3,000 and $4,000 per kilowatt. This means a 10kW turbine can cost between $30,000 and $40,000.
Commercial wind turbines, which are most commonly used for wind farms, can cost as little as $1,000,000 and as high as $4,000,000.
These turbines are massive as they run about 2 megawatts.
The cost of delivery and set up can end up costing even more than the turbine.
You will cost at least $50,000 if not more. This cost can add up, especially in the instance that more than one wind turbine is being delivered, such as in a wind farm.
Maintenance also needs to be taken into consideration of the cost of the wind turbine.
They will need regular maintenance at least twice a year to ensure it lasts as long as possible.
It is estimated that roughly $600 to $500,000 per year goes to maintaining the turbine, depending on the size.
How Much Money Does One Wind Turbine Make?
There are two different ways that owners of wind farms can get paid for their wind turbines.
First, the regular payments vary based on the utility company and location of the wind farm.
These payments can be a flat rate for each megawatt of rated power or a percentage of royalties on the gross sales of the electricity company.
There is also an annual flat payment that is a specific amount of money for each turbine.
For example, wind farm owners will usually earn about $5,000 per megawatt of the turbine per year. If they have a 2-megawatt wind turbine, they will get paid $10,000 each year for it.
It is estimated that one wind turbine will bring in anywhere from $3,000 to $10,000 per year, depending on the size and location it is placed.
Is There Profit in Owning a Wind Farm?
Since wind turbines are so expensive to buy upfront, it can take a while for the money to be earned back. It is estimated that it can take about 15 years for a wind turbine to pay for itself.
As most wind turbines have a life expectancy of about 25 years, the turbine will be paying for itself for the remaining 10 years of its life.
Smaller wind turbines are incredibly profitable compared to more giant turbines.
This is because the cost of maintenance is so much lower, so the ability to earn a profit is much higher.
It’s average for a wind farm to earn between $3,000 and $10,000 per year based on the size of the turbine and the energy created.
For a small turbine of about 10kW, this could mean a profit of between $2,200 and $9,200 each year.
More giant turbines will likely be less profitable for a while unless you have several of them.
This is because the cost of maintenance is much higher and has a lower return rate.
How Much Land Is Needed for a Wind Farm?
Wind turbines will be the most effective and earn the most money when they are located in an unchanging area, have consistent airflow, and have a smooth, steady surface.
This makes regular farms an ideal place for multiple wind turbines.
It is highly recommended that each turbine is placed the proper distance away from another for the best results.
In most cases, the turbines should be at least 1,800 feet from each other to avoid any accidents. This is just more than one third of a mile, so tons of space is needed.
This means it can be tricky to find a spot to place a wind farm. In some cases, utility companies will reach out to farmers to rent their land to run their wind farm.
This is definitely ideal for the farmer because they are getting paid for having wind turbines on their property without having to pay for the installation and maintenance, meaning it is just full profit.
Summary
Finding new sources of energy is an extremely important task. Wind farms are a great way to generate renewable energy while earning a slight profit. Smaller wind turbines are more likely to earn a larger profit than larger wind turbines, but there is plenty of money to be made from running a wind farm.
The estimated income of one wind turbine is between $3,000 and $10,000 per year.
Considering the upfront costs and yearly maintenance, one wind turbine should pay for itself within 15 years.
With a life span of 25 years, this means that the last 10 years you have the turbine is full profit.
Another way to make money with wind turbines without having to foot any of the costs is by renting out your land to a utility company.
They will pay you to rent for using your land, and you won’t have to pay for the install or the maintenance.
This makes any money coming in pure profit for you.
