The hype is definitely around us. The idea of being “green” is in ad campaigns and merchandise sold everywhere. No doubt, as farmers, we love the land as much, or more than anyone. But in hard economic times, where is the value in “going green?”
Why Wind at Your Farm?
1. Interest in being more energy efficient.
2. Interest in energy independence.
3. A hedge against rising energy costs.
4. People simply saying, “this is something I want to do.”
5. Power reliability problems in an area, wanting a power supply independent of the “grid” or the local utility's lines.
(Source: Kruse and Pollard interviews, 2008.)
Costs Associated
The initial cost of a residential scale wind turbine at your farm will be around $12,000 to $13,000, Andy Kruse, the vice president of Southwest Windpower, the largest distributor of small wind generators, said. Kruse explained that disconnecting from “the grid” will near $3 to $4 thousand on top of that initial cost. The wind turbines are “designed to be safe for utilities, so anytime the grid goes down, the wind generator has to go down so it doesn’t produce energy when linemen are out working on the lines,” he noted.
Individuals wanting to use the wind turbines as a sole power source can utilize a bank of batteries, and with wind generation they can put power into the batteries so in times when the utility system is down the family could generate their own power off the batteries. Kruse explained, “As (the small wind generator) is, the design will take a software update, batteries, a battery monitor and anseperate inverter. That’s all is necessary to create a large backup system for your home.”
Returns available
Stephan Pollard, a consultant with a Ph.D. in Environmental Dynamics from the University of Arkansas, said unfortunately, residential and small business scale wind-energy doesn't make much sense when you think in traditional economic terms where nearly everything is undervalued. In other words, "value" doesn't take into consideration the environmental and social costs of coal-fired and natural gas electricity generation. In our part of the country, at this time and with few exceptions, only large-turbine utility-scale wind farming has a chance at yielding a positive return on investment. This hasn't stopped an increasing number of people and organizations from installing small wind-energy systems. Some folks make the mistake of not doing their homework and end up being very disappointed at the amount of electricity production and long payback periods (perhaps as long as 30 to 40 years) that may actually exceed the life expectancy of the turbine."
Kruse said the potential for an investment in wind energy to pay for itself comes down to three factors:
1. Installed cost of turbine(s)
2. How much wind your property has
3. What your electric costs are in your area
Pollard said, "If you assume the current price of electricity for residences is around 8.5 cents a kilowatt hour, and the cheaper it is the longer the pay back period, if we were to talk at the residential level, you’re looking at pay back period of 35 years. Longer than the life-span of the turbine."
The average home in Arkansas consumes approximately 1,100 kilowatt hours in electricity a month. Pollard explained that small wind turbines, given the relatively low average annual wind speeds characteristic of most inhabited places in our area aren't likely to produce anywhere near this much electricity.
What does that mean when it comes to Arkansas' potentials for returns on investment? "Arkansas utilities are required to accommodate net metering at the residential and commercial level. What this means is that you have excess electricity in a given month, it'll be credited at the retail rate on the following month's bill. If there's any leftover at the end of 12 months it is granted to the utility. You might get a credit in a couple of months, but it will disappear in other months. In the end, looking at the big picture, you’re going to be consuming way more electricity than you’re actually producing," Pollard said.
The experts warn that literature published on the subject of wind energy might be specific to regions, and not as applicable to a state like Arkansas where wind speeds are generally lower and electricity costs are lower too.
Is a wind generator right for my farm?
Pollard said that there are current 30 meter, 50 meter, 70 meter and 100 meter height wind resource speed maps that have been developed by the company AWS Truewind out of New York. He noted that only the 50 meter maps have been verified. Wind resources at all elevations are projections. Also, small wind turbines will rarely be above 30 meters from the ground, with most being much lower where wind is less available. He noted the mapping was funded in part by the National Renewable Energy Laboratory.
Kruse noted that, as a retired rancher himself, he knows a wind system can be integrated into a farm to serve many different needs. Livestock can graze around the turbines, and a farm that is utilizing more energy will see more savings, based on economies of scale.
Pollard said that if you are looking to save money on energy at your farm, the "best bang for your buck," will be focusing on energy efficiency.
"If the intention is to save money on the electric bill, know that spending a little money on energy efficiency saves significantly more money on the cost of a renewable energy system. Investing in renewable energy is important, but much of the energy produced is wasted. Reduce the amount wasted, and the dollars spent on renewable energy systems will go much farther," Pollard said.
The best way to increase energy efficiency in your home? Add insulation to your attic," Pollard stated.
Evaluating wind maps in Arkansas, and determining your intentions with installing a wind system are both important steps in deciding if a wind turbine is right for your home and farm.
You will save money on your electric bill with a wind turbine, but will that turbine pay for itself on those savings? Our experts say no. But economics isn't the only reason to invest in renewables. These are just some facts to consider.
Look under “Extended Stories” for wind maps and other organizations' websites on small wind opportunities on the Ozarks Farm & Neighbor website, www.ozarksfn.com.
