Research wind speeds

Have a look at a wind atlas to determine your area’s average wind speed. Links to a few countries’ wind atlases are listed under Resources below. If your country is not listed, search wind energy resource atlas, plus the name of your country, on your favorite search engine.

Locate your specific region on the atlas to find out its average annual wind speed. Some atlases provide the speed in m/s or km/h whereas others provide a wind power class. On this 1 to 7 scale, class 3 and above is considered suitable for most wind turbines to generate power. Class 2 is marginal — wind power feasibility will depend on your turbine.

Though searching online for wind speed in your area is fast and simple, it is not overly accurate. These assessments are usually made at heights greater than a small wind turbine will be located at, meaning it will be able to access the stronger wind that comes with height and avoids the pitfalls of being sited close to the ground such as turbulence caused by trees and buildings and roughness of land (tall grass vs. water).

Test wind speeds

To accurately measure wind speeds for your specific site, use an anemometer, an instrument designed for testing wind speeds, that has an accuracy of at least 1% or +/- 0.2 m/s.

Set up your anemometer where you plan on siting your wind turbine (hopefully away from obstacles such as trees and buildings). Try to position it as high as possible to more accurately gauge what wind speed will be at the level of the turbine. Take readings regularly over the course of a few months or, if you have the time, an entire year to get as accurate data as possible.

Once you have collected all your wind speed data, add up all the numbers you have recorded and divide that figure by the number of readings you have taken to calculate the average annual wind speed for your location.

Taking the time and effort to conduct a full wind speed assessment will provide you with the most accurate gauge of wind speed for your location and will give you the peace of mind knowing how much wind you can expect to get from your site.

Resources:

• National Renewal Energy Laboratory: Wind Energy Resource Atlas of the United States
• Environment Canada: Canadian Wind Energy Atlas
• UK Department of Energy & Climate Change: Windspeed Database
• Wind Atlases of the World: European Wind Atlas

Once you’ve explored these characteristics check out our list of the top five low wind speed turbines and this primer on the market, economics and uses for small wind turbines.

Wind Speed

Rotor diameter defines swept area, which is the major determining factor in how much power a turbine can generate. The larger the diameter, the more power will be generated. Small wind turbines generally run in the 8 to 56’ range.

When analyzing different models’ specs do not dwell on peak output since different manufacturers use different wind speeds to make their assessment, making it an unreliable gauge. Instead, focus on monthly energy output in kWh to estimate how much electricity you can expect a model to produce in a month.

Cut-in / Cut-out

Once you know the average wind speed for the site you have chosen, use that information to find a turbine that is right for you. If your site gets minimal wind, have a look at models designed to operate in low wind speeds and with a low cut-in (the wind speed that the turbine starts generating power at). If you’re blessed with lots of wind, pay particular attention to cut-out, (the maximum wind speed a turbine can handle — any additional increases in wind speed won’t yield higher power).

Upwind or Downwind

Most models on the market are upwind machines (blades on the windward side). There is no clear advantage between the two designs. Look at the specs of each individual model to accurately assess its performance.

Horizontal or Vertical Axis

Horizontal axis wind turbines (HAWT) are the dominant technology on the market because, in general, they are more efficient than vertical axis wind turbines (VAWT) — 35% to 30%. This is partly due to the VAWT’s less efficient design in regards to generating lift. Part of the reason also has to do with the extra stress that affects the interior of the turbine, the weakest part of a VAWT, which results in manufacturers increasing the strength (and weight) of their product. For HAWTs, the middle is its strongest point so needs no extra reinforcement.

Noise

Remember the NIMBY (not in my backyard) factor. You don’t want to go buy and install a turbine to have an irate neighbor come knocking at your door the next day demanding you to turn the volume down. Avoid the problem before it’s too late. If you are siting the turbine close to neighbors, have a look at the many models on the market that claim low noise operation.

Vibration

If you’re mounting your turbine on your roof, consider the vibration factor. This concern becomes particularly important if anyone in your home is a light sleeper. Once it’s up, it’s up. If you plan on selling your home and leaving the turbine behind, think about the impact a vibrating turbine will have on your sales price.

Warranty

Are you handy with repairs should the need arise? Do some research on the Internet and by asking the dealer how often the model breaks down or if it has a high return rate. Does the warranty cover parts and labor, and does it include crane costs, if that is necessary? How much do you feel like gambling that your model won’t break down? Once you’ve assessed all these factors you’ll have a better idea of how long a warranty you feel comfortable with.

Installation and Maintenance

Is this a DIY installation or would you need a professional installer to put it up? Flip through the operating manual to see how easily understandable it is. Will you be able to repair this on your own? Ask how easy it is to obtain spare parts now as well as years from now. Also, ask the dealer if they offer installation, maintenance, and tech support help to customers?

Foreign or Domestic?

If you find a foreign model that you like, consider the long-term implications of the purchase as you may not get support from your local importer years down the road. Though a problem may never arise, another possible alternative is that you may have to wait around a long time for parts when repairing your turbine or you may have issues communicating with the foreign manufacturer.

Other Considerations

Reliability: How long has this manufacturer been in operation? How long has this model been on the market? Are there many returns or repairs? Does the model perform up to spec?

Safety and protection: Does the turbine have a shutdown mechanism in the event of a severe storm? How about lightning protection?

Grid connection: Find out whether the model can be connected to the grid, if that is a concern to you.

Other Components

Ask the dealer if the following come as part of the package or if you need to buy them separately. Assess each component according to your individual needs:

• Tower: the higher the tower, the stronger wind your turbine can capture. A turbine raised high in the sky is also more likely to avoid turbulence caused by buildings and trees as well as the friction from rough land.
• Batteries: only necessary for storing electricity in off-grid or battery backup systems. If you just want electricity when the wind is blowing, batteries are not a concern.
• Inverter: essential component to convert the variable DC output from a turbine to useable AC.
• Wiring and conduit: transports the electricity from the turbine for conversion.
• Controller / electronics: controls battery charging or input to inverter.
• Meter: provides system management.

You’ll need sufficient space and wind strength to install a small wind system, but advances in technology, along with financial incentives and stimulus programs, make small wind turbines an increasingly attractive investment for a widening range of locations and purposes, as well as from a variety of perspectives. Installing a small wind turbine can enable you to:

• significantly reduce your monthly utility expenses
• become partially, if not completely, self-reliant for electricity
• generate emissions-free, renewable electrical power for many years
• contribute to a rapidly growing manufacturing sector that’s creating green jobs
• help reduce your nation’s dependence on fossil fuels and imported oil
• reduce your taxable income
• earn credits against your electricity bill by supplying electricity to the grid
• increase the value of your home and property

The Small Wind Turbine Market:

Nearly 8,000 small wind turbines worth $139 million were sold in the USA in 2010, according to the AWEA’s 2010 US Small Wind Turbine Market Report. That’s an additional 25.6MW of clean, renewable electrical power. (source: www.awea.org)

The added capacity from 2010 brought cumulative US small wind turbine sales up to 144,000 units, and total generating capacity up to 179MW, enough to avoid 161,000 metric tons of CO2 emissions every year, the equivalent output of 28,000 cars. Sales and installations represented the equivalent of 1,500 full-time jobs.

The US small wind turbine market has been an economic and manufacturing bright spot in difficult economic times, growing more than 15% in 2009 in a recession.

It also remains a predominantly homegrown market. US manufacturers account for 83% of the domestic market on a unit basis and 94% of domestic sales. Eighty percent of all the components used in USA-manufactured small wind turbines were also made in the USA.

Globally, seven of 13 small wind turbine manufacturers around the world reporting sales greater than 1MW in 2010 were from the USA. Two-thirds of all global small wind turbines sold were made by US manufacturers.

Where Are They Being Used?

The US small wind turbine market is evolving with changes in technology, market environment and conditions, and public values and attitudes regarding energy use and production. In its 2011 market report, the AWEA noted a “pronounced shift” away from off-grid micro-scale (1kW or less) to larger, grid-connected systems. On-grid units made up more than 90% of added small wind generating capacity in 2010.

While small wind turbine use continues to grow in remote and rural locations and to support on-grid electrical power, the number of suburban, and even urban, small wind turbine sites is increasing as well.

The residential (primarily rural) market continues to be the leading source of demand for small wind turbines. Off-grid and grid-connected homes are the principal users of small wind turbine systems with capacities less than 20kW, according to the AWEA.

Farms are another stable and growing source of demand, particularly with farmers reinvesting in their farms as a result of higher commodity prices. The AWEA reported modest growth among US farms in 2010, mostly of 50-100kW turbine systems.

Use of small wind turbines to generate electrical power is also growing with schools and universities, as well as municipal government sites. Commercial, light industrial sites and hospitals are growing users of small wind turbine systems greater than 5kW for grid support, as well.

Small Wind Turbine Economics:

The average installed cost of a small-wind turbine in the USA was $5,430/kW in 2010, according to the AWEA. In addition to the cost of purchasing and installation, you’ll need to factor maintenance costs into your small wind system financial calculations.

The availability of net metering is a key consideration when choosing a small wind system, particularly when it comes to deciding whether to connect to the grid or go off-grid. Two-way net metering is spreading across the USA. If your electricity provider offers net metering, installing a small wind system can produce some monthly income, at the very least in the form of credits that can reduce your electric bill when you use more than you generate.

To get a net metered small wind system up and running, you’ll have to contact and work with your electricity provider, local authorities and neighbors, make your way through a state application process, and purchase interconnection materials. Though approved or disapproved at the state level, it’s advisable to discuss your plans with neighbors as well as local officials, and any relevant property owners’ groups, as there may be additional rules and restrictions that apply.

There are alternative ways to evaluate the return on your small wind systems investment. Given all the factors involved, this can get fairly complicated and could be an article unto itself. I’ll mention two of the most common financial metrics: net present value (NPV) and internal rate of return (IRR). Both are discounted cash-flow methods that take into account the amount and timing of cash inflows and outflows, the time period of the investment, the time value of money, and a discount rate or rate of interest indicative of the opportunity cost of investing your capital elsewhere.

Incentives:

There’s a lot in the way of financial incentives and assistance available to reduce the size of your small wind turbine system investment and make it more affordable. Federal, state, utility and local agencies provided more than $30 million in rebates, tax credits, grants, low-interest loans and other forms of financial assistance for small wind systems in 2010, the AWEA reported. Approximately half of US small wind turbine sales by capacity, 12.4MW or 900 units, benefited from discounts in 2010.

Perhaps the most significant boost for the US small wind turbine market came in 2009, when both the President and Congress agreed that small wind systems, along with other better known types of more renewable power technology, qualify for a federal Investment Tax Credit (ITC). That means you can deduct what you paid for a small wind turbine system from your gross income dollar for dollar, thereby reducing your federal income tax.

The US Department of Agriculture and Treasury Department also offer support programs. The US Department of Agriculture’s Rural Energy for America Program (REAP) and the Treasury’s 1603 payments funded 250 small wind installations with a total 6.8MW of capacity across 30 states last year. Installations in Iowa, Ohio, Wisconsin, Massachusetts and Nebraska received more than 3/4 of the $13.7 total, according to the AWEA.

Some 30 US states offered small wind incentives and grants in 2010, more than 1/3 the result of funding from the American Recovery and Reinvestment Act of 2009. California and Wyoming funded the most small wind turbine installations in 2010. Ohio, Arizona, Colorado and New York followed.

The US Department of Energy’s (DOE) website is an excellent source of independent information on financial incentives and other programs, as are state and local government information resources. The small wind section of the AWEA’s website is another. Your local electrical utility, or utilities, can also be good sources, and they may even offer their own incentives.

How To Choose the System that’s Right for You

To begin with, you should familiarize yourself with the basic working and components of a small wind turbine and system. There’s a wealth of information out there and it’s readily accessible on the Internet. The AWEA’s small wind website is an excellent resource, as is the DOE’s Wind Powering America website, which includes a US Consumer’s Guide to Small Wind Electric Systems. Manufacturers’ websites, such as Phonowind’s, can also be excellent information resources.

You’ll need to have enough open space, as well as permission from state and local authorities, to install a small wind system. One acre is generally the minimum deemed suitable for conventional horizontal-axis small wind turbines, though this varies with local conditions, rules and regulations. Reportedly more efficient and requiring less space, vertical-axis wind turbines may be a viable and attractive alternative, especially for those with limited open space.

You’ll need to know your location’s wind power potential at various altitudes, the topography and your own energy requirements. Determining how much energy you use and how much you’d like to produce provides a solid base for comparisons and will help you decide on the type and size of turbine you’ll need.

The federal and state governments are valuable sources of information when it comes to determining local wind strength and variability. The DOE’s Energy Savers Program has a website specifically for this purpose. The National Oceanic & Atmospheric Administration’s (NOAA) National Climatic Data Center (NCDC) provides free, public access to local average wind speed data.

Local area wind maps are also available from state government departments and agencies, as well as from small wind turbine manufacturers. You may need to spend a little time familiarizing yourself with them, but they are excellent resources and great places to start.

Alternatively, or in addition, you could install one or more anemometers at various heights, and measure wind speed and variability yourself. A year’s worth of data would be ideal, but you may be able to do with less and still be reasonably assured you have a good estimate.

Perhaps the most direct way to go about this would be to hire a wind power site assessment specialist to do it. You may want to find one that’s independent of any particular manufacturer to assure that they are completely unbiased.

Zoning and Permitting

Another key element of choosing a small wind system is getting familiar with state and local zoning and permitting regulations and procedures. State and local authorities typically categorize wind turbines by their generating capacity and height, both to evaluate whether or not they qualify for financial incentives as well as for zoning permitting purposes.

Definitions of small wind systems vary from state to state. Vermont, for example, defines a small wind system as one with less than 15kW capacity less than 120’high. Searching through your state and municipal government websites, and/or paying a visit to one of their offices, are good ways of getting started.

When it comes to zoning, visual impact is the main consideration for wind systems, both small and large. Noise is also considered when state and local officials assess any “undue adverse impact” the system would have on neighbors and the community. If you live in a housing development or subdivision, or if you belong to a neighborhood association, you’ll probably need to get formal approval from them before moving ahead with local and state approvals.

Small Wind Turbines: What’s Out There?

You’ll also need to become familiar with alternative small wind turbine types and find out what’s available in your area. In addition to traditional small horizontal axis wind turbines, there is a growing number of vertical axis wind turbines on the market.

There are at least 66 domestic small wind turbine manufacturers in the USA, according to a 2008 AWEA count, plus a growing number of foreign manufacturers distributing their products in the USA. Almost all do most of their business through local distributors and agents.

Good, useful directories of small wind turbine manufacturers and service providers are available on the Internet from Source Guides and Windustry, among others.

Once you’ve reached the point of choosing a small wind turbine and system, your decision essentially boils down to choosing between horizontal axis and vertical axis wind turbines. Most small wind systems sold in the market today are built around traditional horizontal axis small wind turbines. They produce more electricity from a given amount of wind, so if you’re looking to maximize electricity generation, a horizontal wind axis turbine is probably your best choice. Horizontal wind turbines won’t perform well in turbulent wind conditions, however. In addition, they require more open space, and they are noisier and heavier.

Besides being lighter, making less noise and requiring less space than their horizontal axis counterparts, vertical axis wind turbines offer the advantage of being able to generate electricity no matter which direction the wind is coming from. Some are even powered when the wind blows from bottom to top or vice-versa. Besides the advantage of generating power in variable wind conditions and from 360º, they typically perform better at lower heights. The SmallWindTips website is an excellent source of information for understanding and comparing small wind turbines, and the advantages and disadvantages of different turbine designs.

Evaluating and comparing the likely performance and reliability of small wind turbines can be confusing, if not frustrating. Competing claims about rated performance can be based on different test conditions, and manufacturers have changed the ratings numbers of their turbines with changes in the way financial incentives (such as the investment tax credit) are determined, so you’ll need to read the fine print and make sure you’re comparing apples to apples.

Again, a lot has been written on this topic. Renewable energy industry veteran Paul Gipe’s Wind-Works website is an excellent resource for anyone thinking of purchasing a small wind turbine system.

Fortunately, significant progress in clearing up the confusion has been made with the establishment of the Small Wind Certification Council (SWCC), which provides independent, standardized testing and certification programs. Manufacturers voluntarily submit their products for testing and certification. Doing so is worth their while, and you should check and ensure that the system you’re considering has been tested and is certified by the SWCC.

The strength and intensity of wind fluctuates dramatically throughout the day. Strong gusts can last just a few seconds before being reduced to a mild breeze. When winds are too strong for the turbine to handle safely, the pitch of the turbine blades must be adjusted to a neutral position to act as an emergency brake. Until recently, only bulky batteries could provide the power necessary to shift the pitch and stop the blades. Now, ultracapacitors enable the turbine to adjust the pitch of each blade continuously, significantly boosting efficiency.

We encounter capacitors every day. They are found in televisions, computers, and cell phones. Ultracapacitors, also known as electronic double-layer capacitors, have an energy-density capacity hundreds of times greater than the capacitors found in home electronics. Companies such as New York’s Ioxus manufacture ultracapacitor modules, which group six capacitors together in a series. These modules are the ones primarily used in wind power, and it takes 30-60 modules to power each of a wind turbine’s three blades.

Ultracapacitors themselves are more efficient than traditional battery technology, even though they both function by charging and discharging energy. Batteries use chemical energy storage and lose about 30% of their energy during each cycle of charging and discharging. Ultracapacitors, on the other hand, rely on static electricity to store energy on the surface, resulting in a longer, more efficient life cycle. While ultracapacitors can complete over a million cycles of charging and discharging, batteries are capable of only 10,000-50,000 cycles. This means that ultracapacitors need only be replaced once every 10 years, instead of every 3-5 years for batteries.

Batteries also present several logistical and physical challenges. For example: The best location within a turbine to house power storage is in the rotating assembly. But batteries large enough to cope with the highest of winds are heavy, requiring extensive structural supports. They also need to be insulated from the cold, and vented to release hydrogen gas during cycling. Ultracapacitors, by comparison, are lighter (1/5 the weight), can cope with lower temperatures, and do not require venting.

Because cost is often cited as a prohibitive factor in wind-power generation, ultracapacitors may well be the answer to this challenge. Turbines are frequently located in difficult-to-reach locations, particularly if that location is offshore. By reducing the number of power supply changes, savings are realized in the cost of sending expensive technicians out to the rigs. Finally, the cost of ultracapacitors themselves has been dropping at a faster rate than the cost of batteries.

Since their first use in wind turbines in 2006, over 1,000,000 ultracapacitors have been installed in wind turbines. Existing turbines are now being retrofitted to eliminate the need to replace and maintain batteries, and turbine manufacturers are turning more often to ultracapacitors for their pitch-control potential. Ultracapacitor applications may soon expand to include controlling the yaw, or the orientation of the entire turbine. We’ll keep you posted!

The first thing you need to know is that wind power is proportional to the cube of wind speed, meaning that if a turbine generates 1 KW at 10 mph, that same turbine will generate 8 KW at 20 mph (double the wind speed^3 = 2 x 2 x 2).

That’s the reality of wind energy. Luckily, newer wind turbines are designed to work in wind speeds as low as 0.5 mph. Yes, less than 1 mph, a wind so light you’d have a hard time getting a feather to blow through the air. Though the amount of energy your turbine will produce at these speeds is miniscule, it is still free energy. Rather than have your turbine sitting idle, you might as well be putting it to use. Here are 5 turbines that specialize in catching low speed wind.

Gearless Blade Tip by WindTronics

Wind speed is greatest at the tips of the blades. WindTronics capitalized on this aspect of wind power, by designing their Gearless Blade Tip Power System, a unique design that allows the turbine to quickly react to windspeed changes, thus maximizing its energy capture. Using a gearless direct drive design, the turbine’s small magnets located at the tips of its blades capture wind where it is greatest while virtually eliminating mechanical resistance and drag by foregoing the need to turn an internal generator. Instead, power is generated when the blade tip magnets spin around its perimeter frame.

Billed as the “highest output, lowest cost per kWh installed turbine ever made (in class and size),” Windtronics’s turbine can start-up at a speed of 0.5 mph, a mere wisp of wind, and generate electricity between 2 to 45 mph. That, compared to traditional gearbox turbines that require minimum startup speeds of 7.5 mph, means this gearless model is capturing a lot of wind when other turbines aren’t. In addition to its extremely low start-up speed, Windtronics claims their turbine performs without the same amount of noise and vibration as a traditional wind turbine.

Compact Wind Acceleration Technology by Optiwind

The Optiwind turbine was specifically engineered for use in populated areas with slow, class 2 wind speeds (approximately 12 mph). This turbine increases the amount of wind power generated by 75 percent using an innovative wind acceleration technology that funnels wind into its five blades.

This new technology offers additional benefits. The turbines don’t need to be as high as the clouds to generate electricity, the small blades are not as likely to harm birds and bats since they are only as wide as the tower, and the turbine is quiet and simple to operate.

Multiple Rotor by Selsam Innovations

If a flock of geese flies more efficiently than a lone goose, a sailboat with more sails moves faster than a boat with a single sail and an animal with four legs runs faster than one with two, why wouldn’t a wind turbine with multiple rotors produce more energy than one with one rotor? That is the question Selsam Innovations designers asked themselves when developing their multiple rotor system.

Though larger rotors capture more wind and they are much heavier. Selsam designers believe that since the slower rate of rotation does not make greater wind capture worthwhile, they designed a system with multiple small, light rotors mounted on a single driveshaft. The shaft is pointed downwards and the rotors are sufficiently spaced apart so that each rotor receives fresh wind. In testing done at Tehachapi, CA and monitored by Windtesting.com, their model generated the same amount of power at half the wind speed as a typical horizontal turbine. At the same wind speed, six times as much.

Direct-Drive by D400

Intended for marine and rooftop installations, the D400′s computer-designed rotor blades are specifically optimized for low-speed operation and run a 400 Watt direct drive generator.

In testing done by yachtsmen off the UK’s south coast, an area with average wind speed of 9 knots, the D400 outperformed the other eight turbines tested. Its output was more than double the next best turbine, despite being smaller. The manufacturer also claims that this model is extremely silent and vibration-free, making it a safe bet for the rooftop.

Micro-Wind Turbine by Wren

Made specifically for low wind performance, the Wren utilizes low TSR rotor blades proven to perform in 8m/s winds to power its small direct-drive micro-turbine. Being a micro-turbine, this model provides limited power, making it an ideal choice for applications such as powering an electric fence.

The Wren’s small size makes for an attractive, low-profile design. Despite its small stature, this sturdy turbine can handle severe weather conditions, all the while running smoothly and silently.

Purchasing a wind turbine is a major decision, so look around thoroughly at all the choices.

More and more options are becoming available every day, which makes your job as a consumer harder, but the benefit is that if you do your job right you will find a system that works just right for you. So if you live in Calmsville, USA where the air is always still, don’t give up on your dream of owning a wind turbine. Just take the time to shop around and you’ll find a model that will blow you away.

Resources:

• Home Power: Wind Turbine Buyer’s Guide (www.homepower.com)
• Database of State Incentives for Renewal Energy (DSIRE) (www.dsireusa.org)
• Ontario Ministry of Agriculture: Electricity Generation Using Small Wind Turbines at your Home or Farm (www.omafra.gov.on.ca/english/engineer/facts/03-047.pdf)

China has targeted both wind and solar power as future growth areas. This is due to a variety of factors: China has to import both oil and coal; pollution is a major problem; the country is ideally situated to generate wind power; much of the land is drenched with sunshine; and the increasing value of the national currency makes export markets much cheaper to penetrate.

Five years ago, there was not a single Chinese wind turbine maker among the top 10 in the world. Now, there are four, including:

• Sinovel, the second largest in the world;
• Goldwind, which bought into German turbine designer Vensys in 2008;
• Dongfang, which provides 6.7% of the wind turbines used today; and
• United Power.

According to the Global Wind Energy Council, China is erecting new wind turbines at the rate of one per hour. As a result of China’s entry into the market, the price of wind power components has declined drastically, which is a boon for all customers, governments and private parties looking to buy. It is projected that by 2030, China could satisfy all of its own electricity needs from wind power alone.

It’s the same story for solar power. China, with Taiwan, now accounts for about 75% of global solar-energy panel production. While China produces most of the solar panels in the world, the great bulk of the output is destined for export. As a result, spot market prices for solar wafers and panels declined by about 40% in 2011. Market prices are now below manufacturing costs. Prices will continue to fall, as global demand needs to be at least 23 gigawatts (GW) to maintain present pricing levels. Currently, global demand is at 18.3 GW, meaning the glut in solar power is here to stay.

Customers around the globe can only benefit. Even if some companies such as Evergreen Solar can’t compete and will go bankrupt, everyone will still benefit from the following factors:

• Wind and solar energy power will be available at lower costs;
• Lower costs will expand the use of wind and solar power, decreasing pollution; and
• Governments will not waste money subsidizing companies that cannot compete, saving taxpayer dollars.  Examples:  Evergreen Solar, which filed for bankruptcy, received $60 million in government aid.  At the date of posting, Solyndra, which received an Energy Department loan guarantee worth $535 million, also filed for bankruptcy.

This is exactly what happened with the domestic automobile industry in the United States. Cheap, energy-efficient cars, primarily from Japan, made global inroads for the same reason that Chinese companies are now making inroads in wind and solar power. The cars from Japan were more reliable while being less expensive, polluting less, and using less gasoline — eventually that forced changes in the marketplace. The end result is that the automobiles of today are of a significantly higher quality at a lower relative cost, while being more energy efficient and much more environmentally-friendly. This is what competition from China will do globally for solar energy and wind power.

According to an article on greenlivingideas.com, the number one benefit of wind power is that it is the least expensive of all other alternative energy sources. Many authoritative sources agree with this viewpoint. The American Wind Energy Association (AWEA) for example, claims that in the past 20 years, the average cost of building utility-scale wind systems has dropped by nearly 80%. Since 1980 the cost has gone from 30 cents/kWh to 5 cents/kWh. Note, this a general outline given the variability of wind consistency by location.

You may be wondering why wind power is more or less efficient based on location… According to AWEA, you have to take into account 3 important factors when considering the costs of wind power and those factors include:

1. The size of the wind farm
2. Wind speed at the site
3. Cost of installing wind turbines

Basically, the larger the wind farm, the lower the cost of energy generated there. The higher the wind speed, the more energy is produced per unit. The less expensive the construction costs are, the higher the return on investment. These are all standard business concepts including economies of scale, cost of labor and raw materials. The one wild card in this situation is the wind itself, which may be classified as a raw material input, and may even be expected to evolve to higher or lower levels over decades of climate change. Just below is a map of the average annual wind power available across the United States (darker means more wind), visit Wikipedia for more information on current wind power usage and and available transmission lines.

Production costs aside, wind power produces zero carbon dioxide emissions once the site is complete, compared to other sources of energy such as coal. According to an article by MGE on wind power, an MGE wind farm reduces the production of CO2 emissions by 18,880 tons.

One other harmful emission that wind (and most other clean technologies) help us avoid is sulfur dioxide (SO2). SO2 is a byproduct created through the burning fossil fuels. When it mixes with other chemicals in the atmosphere, it can create acidic compounds. An average wind farm cuts SO2 emissions by 119 tons per year, significantly reducing acid rain.

While it does take a lot of energy to create a wind turbine initially, that energy is recovered in a matter of months. MGE states that “much of the energy used to manufacture turbines is contained in the rotor and nacelle. One-third of the total energy is consumed in making the concrete foundation and tower.” Compared to many other clean energy sources, wind farms require less energy to create. Aside from production, costs are accrued through land purchase and regulations. Still, wind power continues to be the most affordable form of clean energy. Once installed, less than 5% of a wind farm site is dedicated to the turbines themselves which means farming and grazing in those areas can continue unabated. By comparison, photovoltaic solar panels take up more space and would not allow for plant growth directly under or above, reducing the usability of agricultural space. One argument here would be that deserts could house large solar arrays, but the transmission of electricity over long distances significantly decreases output and thus overall efficiency. By harvesting energy closer to the locations where it will actually be used a gain in overall efficiency is achieved.

According to a study released by The Department of Energy’s National Renewable Energy Lab (NREL), the power grid for Arizona, Colorado, New Mexico, and Wyoming could accommodate 30% wind power and 5% solar power without creating new infrastructure. This exemplifies the different ways that alternative energy sources can compliment each other. During the day, solar helps offset peak demand and during the night, as wind picks up, it overlaps where PV solar drops off potentially charging vehicles and other electronics connected to smart grids.

While it is clear that there are many benefits to the adoption and use of wind power, there are also several challenges worth stating here. One NREL study states that “wind is packed with kinetic energy–molecules in motion that can be used to make other molecules move such as commonly seen windmill water pumps, or used to compress gas and convert it into electricity.” However, the wind needs to blow in order to create electricity. When the wind is calm, there is no energy being created. In the United states, large coal, natural gas, and nuclear plants are still needed to provide backup power in case the wind ceases to blow. Dr. Debra Lew, product manager for the NREL study, stated, “If key changes can be made to standard operating procedures, our research shows that large amounts of wind and solar can be incorporated onto the grid without a lot of backup generation.” This research is ongoing but the addition of new wind farms in Wyoming and other states help to create new models and baselines for comparison in other states, leading to expansion of wind power adoption nation wide. The point is, adding wind power potential doesn’t allow us to cut out as much dirty “backup” power generation as we’d like because the wind is unreliable whereas coal is not (at this point in time).

As mentioned earlier, it is possible to configure a power grid that runs on 30% wind power and 5% solar power. However, NREL writes that in order to accomplish this, “utilities will have to substantially increase their coordination of operations over wider geographic areas and schedule generation deliveries, or sales, on a more frequent basis.” This is all part of the smart grid and smarter government organizations. At the time being, traditional fossil fuel energy creators only provide scheduling for one to two hours at best. Improvements in scheduling would allow generators to adjust the amount of power based on changes in system conditions such as increases or decreases in wind or solar generation.

This sort of coordination and progress is an essential piece of the future smart grid that will connect reliable dirty energy sources to inconsistent clean ones along with battery storage dispersed across the grid. Smart devices will charge up during the night hours using wind energy and then share their charge when the grid gets overwhelmed during the daytime hours. This sort of coordination will allow coal plants to lower their capacity and slowly phase out dirty energy. For these reasons, battery technology is a hot area of focus right now and includes more than the traditional Lithium and Lead Acid solutions of years past.

Wind power is proven and expanding but it’s not the only solution. Based on the raw inputs of steal required to build traditional wind turbines we could not meet current world power consumption levels. Future turbine designs incorporating carbon nanotechnology in combination with a smart grid and storage technology will help us reach the true energy potential that wind could provide. As new smart devices are designed to consume less phantom energy and operate more efficiently overall, demand for electricity may level or even decrease. Each of these factors will play a significant role to improve the ways we harness wind energy in the future. As it stands, wind power is leading the pack in terms of pricing and efficiency… in the locations best suitable for its use.

According to A.R.S. §43-1085 enacted in January 2006, tax credit can be applied to corporate or personal taxes which are equal to 10% of the original installation cost of the energy system. The taxable years began in the year of 2006 and it’s valid up to 2012. Originally according to HB 2429 this tax credit was eligible only for solar and wind installations in commercial and industrial applications. However, in 2007 according to HB 2491, the tax credit became applicable to all non-residential entities. Entities which were exempted from tax in past also became eligible. According to the legislation, all third parties involved in manufacturing and installing of such solar and wind systems are eligible to apply for this tax credit of 10% of the original cost of the system. The list of eligible renewable technologies under this tax credit includes solar hot water, solar space heaters, wind power, solar cooling, and solar thermal electric.

Entities which are eligible for this credit include commercial, nonprofit, industrial, state government, local government, agricultural, institutional etc. An eligible device under this provision is defined as a system or series of mechanism designed mainly for providing heat, cooling, to produce electricity, or mechanical power by means of collecting and transferring renewable energy sources. Passive systems are also eligible under this tax credit scheme. Such systems must clearly be designed as solar or wind energy systems. It cannot simply be a part of a normal structure such as a window. The maximum amount that can be credited under this scheme is capped at $25,000 for one building in the same taxable year and $50,000 in total credits in any given year. If the calculated tax credit exceeds the taxpayer’s income tax liability, then the excess amount not used to offset the tax can be carried forward for a maximum time of 5 consecutive years.

This tax credit scheme is administered and monitored by the Arizona Department of Commerce (DOC). Interested candidates must apply to the department to qualify for the tax credit. The DOC will initially provide a certification to qualifying installations and will also issue a credit certificate to the business holder after the installation is completed and approved. A copy of the tax credit certificate must also be submitted to the Arizona Department of Revenue. The DOC is allowed to approve tax credits up to a total of $15 million each calendar year.

According to A.R.S. § 42-14155 enacted in April 2000, all the taxable renewable energy equipment operating in Arizona will be assessed at twenty per cent of the depreciated cost. This depreciated value of the equipment owned by utilities and other entities will be used for the purpose of determining the property tax. For the purpose of this section, the department has defined renewable energy equipment as electric generation facilities, electric distribution, and electric transmission in the state used for the transmission and distribution of electric power derived from wind, solar and other non-petroleum renewable energy sources not intended for self-consumption. Though the original expiration date for this scheme was set to December 2011, later according to House Bill 2614 it was extended to December 31, 2040.

According to A.R.S. § 43-1083 enacted in January 1995, any individual taxpayer in the state of Arizona who has installed a solar or wind energy system at his or her residence is eligible for the Arizona’s Residential Solar and Wind Energy Systems Tax Credit. The tax credit is levied against the taxpayer’s personal income tax. The amount which can be credited under this credit scheme is equal to 25% of the cost of the solar or wind energy device. The maximum amount which can be credited is capped at $1,000 regardless of the number of devices installed. The credit must be claimed during the same year the device is installed. If the credited tax amount exceeds the taxpayer’s total tax liability during the same year, the excess amount can carried forward for up to five years. The list of renewable energy technologies under this tax credit scheme include passive solar space heat, solar space heat, solar water heat, wind and solar cooling. the installed system must be new and must also be in compliance with all applicable performance and safety standards. The system must also carry a minimum 2 year warranty on collectors, heat exchangers and storage units. Other devices must carry a warranty of at least 1 year.

According to A.R.S. § 42-5061 (N) enacted in January 1997, the Arizona Department of Commerce Energy Office has initiated a Solar and Wind Sales Tax Exemption. According to this sales tax exemption plan, any retail sale of solar or wind energy device and installation of such device by contractors is eligible for 100% sales tax exemption. Eligible solar and wind devices include wind electric generators and wind powered water pumps in addition to passive solar heating, solar water heating, and photovoltaic. This sales tax exemption is not applicable to devices which are not part of the eligible system such as batteries, controls etc. though previously the maximum amount that could be exempt under this scheme was capped at $5,000, later HB 2429 eliminated this limit per eligible device. To apply for this sales tax exemption the solar energy retailer or solar energy contractor must be registered with the Arizona Department of Revenue prior to selling or installation. A guide has also been compiled by the Arizona Department of Commerce Energy Office depicting solar wind devices that qualify for this sales exemption.

According to HB 2429 enacted in June 2006, solar and wind energy devices add no value to the property under the scheme of Energy Equipment Property Tax Exemption. Though the scheme was originally designed only for solar energy systems, later HB 2332 enacted in July of 2009 expanded the exemption to other renewable technologies such as combined heat and power systems, energy efficient building components etc. according to this bill renewable energy equipment designates devices that produces energy primarily for on-site consumption from renewable resources like wind, solar, forest thinning, biomass, low impact hydro power etc. and energy efficient building components are defined as the components installed to meet or exceed the energy efficiencies prescribed by the United States Environmental Protection Agency Energy Star Program, or by a Leadership in Energy and Environmental Design green building rating standard developed by the US Green Building Council. Interested candidate must submit documents affirming the actual purchase and installation of the system. And installation must be completed within six months at which time the cash value is issued against the system for the initial valuation year.

Various rebate and loan programs

Sulphur Springs Valley EC – SunWatts Loan Program

All Sulphur Springs Valley Electric Cooperative (SSVEC) members are eligible to receive $2 per watt up to a maximum of 25% of the total cost of the solar or wind energy device they install. The interest rate will be set at a low 3%. In return, the borrower must keep his or her house or any other property as collateral against the loan. If the borrowed amount is less than $10,000 then it can be repaid over a time period of the next 5 years in equal monthly installments. For loans involving an amount in excess of $10,000 the repayment period is 10 years. Alternatively buyers can can prepay the full amount without any penalty. This loan scheme has limited funding and will be provided on first come first served basis.

APS – Renewable Incentive Program

Through this incentive program, Arizona Public Service (APS) is offering its customer an opportunity to sell their credits associated with energy generated to the APS. The customers must own devices which use renewable energy resources. The maximum amount is capped at 50% of the total project cost for PV systems and the upfront amount is limited to $75,000. This incentive scheme is eligible in commercial and residential sectors. This program has a budget of $6,650,000 for the year of 2009. It includes $5 million for residential installations and $1.65 million for commercial installations. The company is purchasing energy credits and renewable energy certificates to meet its Renewable Energy Standard (RES). All the customers who participate in this program will receive a one-time rebate or an incentive based on the system’s capacity.

TEP – Renewable Energy Credit Purchase Program

Tucson Electric Power (TEP) started its utility rebate program called SunShare in 2001 to encourage residential and business customers to install new PV and wind energy devices. Under its new Renewable Energy Credit Purchase Program (RECPP), which started in 2008, TEP also included longer list of eligible renewable energy technologies. All eligible technologies also qualify under Arizona’s renewable energy standards program (RES). Incentives are available in exchange for renewable energy certificates generated by the systems.

UES – Renewable Energy Credit Purchase Program

Under this program UniSource Energy Services (UES) is offering its customers an opportunity to sell credits associated with the energy generated by various renewable energy sources to the company. Initially the program was open to only solar energy devices, but in 2008 other renewable energy devices were added. This list include solar hot water, photovoltaic and solar HVAC. This utility rebate program is available to both commercial and residential sectors. PV incentives may also be de-rated based on their expected performance. The maximum amount is capped at 60% of the original cost.

According to 25-6.065, F.A.C. enacted in March of 2008, the Florida Public Service Commission (PCS) started net metering and interconnection for all renewable energy systems with a capacity of 2 MW. The PSC is entitled to set all rules and regulation for this net metering policy. This set of rules applies exclusively to the state’s investor owned utilities. Electric co-operatives and municipal co-operatives do not fall under this policy. All customers who generate electricity using one of the following technologies are eligible for net metering: wind energy, solar energy, hydroelectric power, and geothermal energy.

If the customer is using net metering then his or her net excess generation (NEG) will be carried forward to his or her next bill for a time period of 12 months. NEG is carried forward at the utilities’ retail rate as a kilowatt-hour credit. If NEG is remaining at the end of the 12 month period then it will be paid out by the utility. The System owner will hold the rights of Renewable energy credits (RECs). But RECs can be sold back to the utility by the customer. PSC hasn’t stated any capacity limit for the net metered systems. All information related to the renewable energy system must be filed with PSC. This includes the total energy delivered to and generated from the customers and the total payment made to interconnected customers.

According to H.B. 7135 in June 2008, PSC received the authority to adopt March 2008 rules for interconnected and net metered utilities. A standard interconnection agreement and net metering program for customer owned renewable generation was developed by the municipal utilities and electric cooperatives. Though municipal utilities and electric cooperatives need to file annual reports with PSC, they do not have any direct authority above the utilities.

According to Modified Accelerated Cost-Recovery System (MACRS) the US federal government has enabled recovery of investments in property. This can be accomplished through depreciation deductions. A set of class lives for various properties has been declared by MACRS in the range of 3 to 50 years. During this time period the property can be depreciated. According to 26 USC § 168, the eligible 5 year property types under the energy Investment Tax Credit (ITC) include solar electric and thermal technologies, combined heat and power and wind energy. Large wind facilities are also eligible under this provision of ITC.

This 5 year plan for wind and solar energy has been in effect since 1986. Under the federal Economic Stimulus Act of 2008 in February 2008, a 50% bonus depreciation was added for all eligible renewable energy systems which have been in service since 2008. To qualify for this depreciation option certain criteria must be met. The property purchase must have taken place during the year of 2008 or 2009, it must have been in service since 2008 and it must have a recovery period of less than 20 years. If the property satisfies all of these points, 50% of the adjusted cost can be deducted in 2008 or 2009 and the rest will be depreciated over ordinary schedule.

According to Fla. Stat. § 220.193, Florida renewable energy production credit was introduced to encourage the use of renewable energy in Florida. It successfully helped to increase the number of facilities that use renewable energy as their main source of energy. All expanded facilities that increase electrical production using renewable sources by more than 5 percent are eligible for this credit. A facility which is in service after May 2006 will be provided this credit. According to this tax credit, annually a taxpayer will receive this credit based on his or her production and sale of electricity from a new or expanded Florida renewable energy facility. If the facility owned by the taxpayer is a new one then the credit will be based on the taxpayer’s total electricity production. On the other hand if it is an expanded facility then the credit will be decided based on the increased electricity production after May 2006. The amount is capped at $0.01 per kWh of electricity produced or sold by the taxpayer to an unrelated third party during that tax year.

In order to receive this credit a taxpayer first must apply to the Department of revenue by February 1 of each year. The department of revenue will consult with the PSC to provide the application form. If the total amount of credits in one year exceeds $5 million then each applicant will be allotted a pro-rated amount based on his increased sale and production. In cases where the allotted credits are not used during one year, they can be carried forward to the subsequent next year until a maximum of 5 years have been reached.

In an effort to promote environmentally conscious design and construction Miami-Dade County implemented a program to expedite the review and approval of permit applications for green buildings. In this context green building refers to construction promoting the preservation of resources and environmentally sensitive constructive practices, systems and materials. To determine whether the building is qualified or not, the building official will rely on review and evaluation by recognized environmental rating agencies including the Florida Green Building Coalition, the National Home Builder Association and the U.S. Green Building Council.

According to Fla. Stat. § 196.175 enacted in June 2008, an expired Renewable Energy Property Tax Exemption was revived in 1990. According to this exemption any real property which is improved by installation and operation of renewable energy source devices will be entitled to property tax exemption. The exemption will be provided in the amount of the original cost of the device plus the installation cost. However, the total amount should exclude any sort of cost incurred during the removal or improvement of previous existing property during the installation process. If the exemption was filed in the month of January, then during the next 12 month time period the tax will be exempted for fully operational devices. If the device was operational for only a portion of that period then the amount should be reduced in a proportional manner. This exemption cannot be granted for a period of more than 10 years and the device cannot have been installed before January of 2009.

According to Fla. Stat. § 377.804 enacted in June 2006, the Renewable Energy and Energy-Efficient Technologies Grants Program was started in order to promote demonstration, commercialization, research and development projects using renewable energy technologies and also other innovative technologies significantly increasing energy efficiency for vehicles and commercial buildings. Under this matching grants program any of the following entities is eligible to apply: established companies in the state, universities and colleges in the state, municipalities and county governments, non-profit organizations, and utilities located and operating within the state. Various factors will determine the approval of the grant. A project stimulating in-state capital investment and economic development in rural areas will be given preference. To this end, projects that create more jobs and the development of commercial markets are favored. The project should also incorporate an innovative new technology or an innovative application of existing technology. To evaluate various project proposals the Commission may take help from other external organizations such as Enterprise Florida Inc. and also state universities. It may also solicit expertise from other public and private entities.

According to Conn. Gen. Stat. § 16-243h enacted in January of 1998, the State’s two utilities, United Illuminating Company (UI) and Connecticut Light and Power Company (CL&P), provide net metering options to commercial and residential customers. According to this Electric Restructuring Act all qualified customers must have electrical generators using Class I renewable resources including Wind energy. Net metering is a system to determine the total amount of electricity used by these customers or provided to the power grid by them during normal billing cycles. Average energy prices were determined by Independent System Operator of New England (ISO-NE). The payments ranged from 5.5 ¢ to 8 ¢ per kWh for their net kWh production. However, since HB 7432 was enacted in October 2007, customers are no longer being charged monthly based on power production, instead customers will be able to bank or rollover the full value of their future net kWh production. This arrangement significantly increased customer reimbursement. While customers are able to offset future electric costs, they also have to continue paying monthly charges. According to HB 7432, the individual system capacity was increased to 2 MW and net metering was allowed for all customer classes. According to this policy, banking of kWh is tracked and reconciled for the entire year and the customer is paid for banked kWh at the end of the each banking period at which point payment restarts. CL&P and UI have not put a fixed limit on the net capacity of net metered systems. If a customer’s net excess generation (NEG) exceeds the monthly billing period then it is simply carried over for the following month. For customers with systems greater than 10 kWh, net metering is assesses by the State’s competitive transition assessment. In this case payment is based on the amount of energy consumed by the customer from the facilities of the utilities without netting any electricity produced by him. In all cases renewable energy credit (REC) ownership goes to the customer. A detailed list of all applicable sectors includes commercial, residential, industrial, schools, state government, local government, nonprofit, agricultural, institutional, multifamily residential and Federal Government.

According to Conn. Gen. Stat. § 16-245n enacted in 2000, Connecticut Clean Energy Fund (CCEF) legislation started the Operational Demonstration Program to help industry demonstrate feasibility of its clean energy related idea or product. Only early stage commercial companies are allowed to take part in this program. Applicable technologies include wind, solar thermal and electric, photovoltaic, biomass, fuel cells, small hydroelectric, wave energy, ocean thermal and some other distributed generation technologies. The estimated amount from 2010 funded through this Operational Demonstration Program is $4 million for all systems installed in Connecticut. Projects that demonstrate potential to develop commercial products within a time period of 3 years (5 years for fuel cells) will be supported by the program. In addition to the previously outlined renewable technologies, some other energy resources which do not involve the combustion of petroleum, coal, municipal waste products or nuclear fission are also likely to be funded by the program. All supported projects must have a capacity of at least 1 kW electricity generation. Projects will be provided unsecured loans for funding purposes and repayment terms will last until the project achieves commercial success. Moreover if the net product revenue crosses a certain threshold value, then an additional share will be collected by the Connecticut Clean Energy Fund. System owners are required to provide 25% cash cost share for collecting any sort of funding. The maximum amount that can be funded for each project is capped at $750,000. For funding in excess of $500,000 justification must be made for the project’s large scale potential benefit for Connecticut electric ratepayers. Technology developers must have a strong interest in commercialization of the product. They must gain approval from the Connecticut host site owner or operator. The project must be backed by a team of qualified partners, professionals and contractors. Applications will be evaluated based on a variety of criteria including short term and long term commercial opportunities and viability of the technology. The primary aim of CCEF is to boost Connecticut’s technology economy by investing in clean energy technologies and educating the residents of Connecticut.

In 2007, CCEF approved a loan of $557,134 to fund a 500 kW hydroelectric turbine system at Kirby Mill in Mansfield. The main source of funding in CCEF is the surcharge on ratepayers’ electric bills and it is administered by the Connecticut Innovations.

Connecticut’s Policy Development and Planning Division – Energy Management started a New Energy Technology (NET) program to drive creative talent in Connecticut to promote the most energy saving and renewable energy technologies and aid in funding to commercialization. The primary aim of this NET program is to save energy in Connecticut and to improve Connecticut’s economy by creating new employment opportunities. Incentives or grants will be provided to applicant’s submitting promising pre-commercial technologies that intend to save energy or use renewable energy sources. The maximum amount that will be approved to individuals is capped at $10,000. A small firm employing 30 or less than 30 people is eligible to apply for the grant. A maximum of 5 firms will be awarded the grant on an annual basis. The funding can be used for many purposes such as prototype testing, business plan development, product development, patent application, payroll and product marketing. OPM primarily funds projects that are in early stages of development with limited quantity in production or in the prototype phase. In addition to funding, financial and technical assistance is also provided to recipients of the grant from the Connecticut Office of Policy and Management (OPM). The applicant should consider, OPM is not looking for funding experiments, rather the funding will be provided to new and innovative uses of a technology. Different stages of the program’s application are as follow – in November the Grant application period begins and in February it closes. In the months of April through May, grant documentation is mailed to the applicant. By the end of September in the same year, the grant recipients should get the financial and progress report reviewed by the department.

According to Conn. Gen. Stat. § 12-81, the State of Connecticut provides property tax exemption for facilities that generate electricity from Class I renewable energy systems. The electricity produced must be used for private residential use only. To become eligible for this property tax exemption, the system must be installed on or after October 2007. The system must be used to serve single family homes or multifamily dwellings. The list of eligible renewable technologies include solar water heat, passive solar space heat, fuel cells, wind, biomass, geothermal heat pumps, and tidal energy. Exemption is set at 100% for any renewable energy property. The applicant must claim the exemption to the assessor or board of assessors in the same town where the system is installed and it should be done before the month of November in the applicable assessment year.

Various grant and loan programs

CCEF – on-site renewable DG program

This program provides grants to fund the installation of electricity generating systems in commercial and industrial buildings. Systems that use wind, photovoltaic, hydropower or other renewable energy sources for electricity generation are eligible to apply. An amount of $66.24 million is granted for total funding through this program through the year of 2010. System with a capacity of minimum 10 kW will be accepted under this program. All facilities must be installed within the service territory of Connecticut Light and Power (CL&P) or United Illuminating (UI). For wind energy projects the grant recipients are required to operate the system for at least 10 years. The maximum amount that can be granted to individual projects is capped at $4 million. For small wind projects $3.60 per watt will be funded and the evaluation time frame is 15 year. All renewable energy credits (RECs) generated by the recipient wind projects will be taken by the CCEF and in return the owner will be compensated on the present estimated value of the RECs. 70% of the projected AC energy must be generated within the first 6 months of operation.

CHIF – Energy Conservation Loan

According to C.G.S. 32-315, Connecticut Housing Investment Fund, Inc. (CHIF) provides energy conservation loans for single family owners and owners of 1 to 4 family homes. The applicant must meet the established annual income limit for his family size and location. Interest rate will vary depending on borrow history and condition and loans have a 10 year limit. Multi-Family Energy Conservation Loan Program offers financial support for large residential properties. In this case only loan amounts differ (being larger), all terms are similar.

DPUC – low-interest loans for customer-side distributed resources

According to Conn. Gen. Stat. § 16-243j enacted in July 2005, retail end use customers can qualify for long term financing for the use of customer side distributed resources. The whole program is administered by the Bank of America Leasing & Capital. The maximum amount which can be approved through this program is capped at $150 million. Loans will be provided with fixed interest rate and will be determined at the time of approval of the application. Only projects with a minimum capacity of 50 kW and a maximum capacity of 65 MW are eligible to apply.