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	<title>Comments on: Is small wind a big deal?</title>
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	<link>http://www.marcgunther.com/2009/11/12/is-small-wind-a-big-deal/</link>
	<description>This blog is about the impact of business on society.</description>
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		<title>By: Southwest Windpower’s Big Plans for Small Wind (Audio)</title>
		<link>http://www.marcgunther.com/2009/11/12/is-small-wind-a-big-deal/comment-page-1/#comment-474121</link>
		<dc:creator>Southwest Windpower’s Big Plans for Small Wind (Audio)</dc:creator>
		<pubDate>Thu, 13 Jan 2011 15:00:26 +0000</pubDate>
		<guid isPermaLink="false">http://www.marcgunther.com/?p=2786#comment-474121</guid>
		<description>[...] Reports * Watch a video about their Skystream turbine * See Southwest Windpower case studies * Read Marc Gunther’s view on GE’s investments in Southwest [...]</description>
		<content:encoded><![CDATA[<p>[...] Reports * Watch a video about their Skystream turbine * See Southwest Windpower case studies * Read Marc Gunther’s view on GE’s investments in Southwest [...]</p>
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		<title>By: Martin Holladay</title>
		<link>http://www.marcgunther.com/2009/11/12/is-small-wind-a-big-deal/comment-page-1/#comment-283880</link>
		<dc:creator>Martin Holladay</dc:creator>
		<pubDate>Fri, 20 Nov 2009 19:08:02 +0000</pubDate>
		<guid isPermaLink="false">http://www.marcgunther.com/?p=2786#comment-283880</guid>
		<description>Two new articles on small wind turbines have been posted on the GreenBuildingAdvisor Web site. Here are the links:
http://www.greenbuildingadvisor.com/blogs/dept/green-building-news/backyard-wind-turbines
http://www.greenbuildingadvisor.com/blogs/dept/musings/resisting-allure-small-wind-turbines</description>
		<content:encoded><![CDATA[<p>Two new articles on small wind turbines have been posted on the GreenBuildingAdvisor Web site. Here are the links:<br />
<a href="http://www.greenbuildingadvisor.com/blogs/dept/green-building-news/backyard-wind-turbines" rel="nofollow">http://www.greenbuildingadvisor.com/blogs/dept/green-building-news/backyard-wind-turbines</a><br />
<a href="http://www.greenbuildingadvisor.com/blogs/dept/musings/resisting-allure-small-wind-turbines" rel="nofollow">http://www.greenbuildingadvisor.com/blogs/dept/musings/resisting-allure-small-wind-turbines</a></p>
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		<title>By: Tom Konrad</title>
		<link>http://www.marcgunther.com/2009/11/12/is-small-wind-a-big-deal/comment-page-1/#comment-283836</link>
		<dc:creator>Tom Konrad</dc:creator>
		<pubDate>Sat, 14 Nov 2009 01:23:26 +0000</pubDate>
		<guid isPermaLink="false">http://www.marcgunther.com/?p=2786#comment-283836</guid>
		<description>The economic comparison between small wind and utility scale wind is fairly simple.  

According to your article, you can get subsidies in some places for up to 2/3 of the cost.  If the wind is also good, you get a payback of 5 years or less.  So the payback on the unsubsidized cost with good wind is probably 12-15 years.  Wind turbines typically have a 20 year life, so a 12 year payback (the best case scenario) corresponds to a 5% Internal Rate of Return (IRR.)

Companies usually expect a minimum IRR of 15% to 20% before they will invest in a project.  That would require at least a 6 year payback (with subsidies, after paying for transmission.)  Not only are large scale wind subsidies smaller than small wind subsidies, large wind farms sell power at wholesale rates, which are typically 1/2 to 1/3 the price that a net-metered small wind generator gets.

In other words, the economics of small wind are probably about 1/3 as good as the economics of large wind.  Subsidies can make up the difference, and that&#039;s why they are larger for small wind.</description>
		<content:encoded><![CDATA[<p>The economic comparison between small wind and utility scale wind is fairly simple.  </p>
<p>According to your article, you can get subsidies in some places for up to 2/3 of the cost.  If the wind is also good, you get a payback of 5 years or less.  So the payback on the unsubsidized cost with good wind is probably 12-15 years.  Wind turbines typically have a 20 year life, so a 12 year payback (the best case scenario) corresponds to a 5% Internal Rate of Return (IRR.)</p>
<p>Companies usually expect a minimum IRR of 15% to 20% before they will invest in a project.  That would require at least a 6 year payback (with subsidies, after paying for transmission.)  Not only are large scale wind subsidies smaller than small wind subsidies, large wind farms sell power at wholesale rates, which are typically 1/2 to 1/3 the price that a net-metered small wind generator gets.</p>
<p>In other words, the economics of small wind are probably about 1/3 as good as the economics of large wind.  Subsidies can make up the difference, and that&#8217;s why they are larger for small wind.</p>
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