Owning a Wind Turbine
Farmers and ranchers can generate their own power from the wind, just as their predecessors did in the 1930s and 1940s. Small wind generators, ranging from 400 watts to 40 kilowatts or more, can meet the needs of an entire farm or can be targeted to specific applications. In Texas and the West, for example, many ranchers use wind generators to pump water for cattle. Electric wind generators are much more efficient and reliable than the old water-pumping fan-bladed windmills. They may also be cheaper than extending power lines and are more convenient and cheaper than diesel generators.
"Net metering" enables farmers to get the most out of their wind turbines. When a turbine produces more power than the farm needs at that moment, the extra power flows back into the electricity system for others to use, turning the electric meter backwards. When the turbine produces less than the farm is using, the meter spins forward, as it normally does. At the end of the month or year, the farmer pays for the net consumption or the electric company pays for the net production. Net metering rules and laws are in place in most states.
The Farmer as Wind Developer
A third opportunity for a farmer or group of farmers is to become a wind developer who produces power to sell to others. Electric companies increasingly buy their power from independent power producers rather than generating it themselves. They are also increasingly offering "green" or environmentally friendly power products and may be looking for suppliers of wind power. In addition, a number of states and the federal government provide incentives for wind power development.
Becoming a wind power developer has some important challenges, however. Purchasing one or more large wind turbines can be a substantial investment for even a large farm operation. And smaller wind farms may have to compete with larger, multiple-turbine wind farms, which often have lower production costs due to economies of scale in manufacturing and installation. While green markets may create a place for niche products, the market for green power is still young and profit margins are small.
Farmers willing to take the risk could become wind investors as well. Pooling resources with other farmers can be an attractive option for reducing risk and lowering costs. Cooperative ownership of one or more turbines is common in Europe and is starting to take hold in the United States. In Minnesota, farmers have begun to develop wind co-ops with the help of additional state incentives that are available for small wind projects. Farmers may also be able to team up with a rural electric co-op to finance a project and sell the wind power to its customers. Some rural electric co-ops are far more active than others. Encourage your co-op to be active in wind energy development.
Typical Expenses for a Wind Turbine
The economics of owning a turbine depend on many factors, including wind speeds, the size and cost of the wind turbine, interest rates, taxes, and electricity prices. One key issue is how much of the power the farm uses and how much is sold back to the utility. A study by the Izaak Walton League found that a wind turbine investment pays for itself most quickly when most or all of the power is used on the farm, since the farmer is saving power at the retail price, rather than selling it at a wholesale price.
Assumes a retail electricity cost of 7.5 cents per kilowatt-hour, increasing three percent per year, and annual average wind speeds of 15 mph to 17.4 mph at 50 meters above the ground. Source: Based on data from wind turbine manufacturers and estimates from Thomas A. Wind, Wind Utility Consulting.
With smaller wind turbines, most farm operations can use all of the power. But the cost per unit of electricity generated from smaller turbines is higher than that from larger turbines, so the payback period is longer. Since a well-maintained wind turbine can last 30 years, it can be a profitable investment. Like any other long-term investment, a thorough engineering and financial analysis is important before making the investment.
Successful Wind Farming
The number of farmers and ranchers benefiting from wind power is growing. Here are some examples:
I think it's one of the greatest things that ever happened. It's good for my pocketbook. It's good for the environment. And wind is replenishable; we're not digging it out of a hole in the ground.
Chuck Goodman, retired farmer near Alta, Iowa, as quoted in Successful Farming. Goodman has three turbines owned by Enron Wind Corp., producing power for the utility MidAmerican Energy. The turbines take up about 1.3 acres of land, including an access road. Goodman gets $750 per year per turbine, plus 2% of the revenue, for a total income of about $6,000 per year.
From our winter pasture near the Wyoming border, we used to be able see all the way to Denver. Now all we see is air pollution. We believe it's time to begin using pollution-free energy in the West. That's why our winter range now boasts a wind farm.
Keith & Myrna Roman, ranchers in Weld County, Colorado.
[The wind turbines] are clean and they are noiseless. We just love them. Everybody around here likes them as far as I know. I hope in the future that more people get them. The wind's free and it's here.
Donald and Irene Decker, farmers in Pennsylvania, quoted in Environmental News Network, June 21, 2000. The Deckers have four 200-foot-tall wind turbines installed on their family farm.
For more information
The National Sustainable Agriculture Information Service - ATTRA
Farm Energy Alternatives