What Does it Cost?

Renewable Energy Projects can take many forms and are motivated by many factors. For some, the ultimate goal is to install a system that will produce all of the electricity that their home or business uses, and thereby reduce their household or business Carbon Footprint. For others, it is to offset some portion of their electric bill while protecting themselves from future electric rate increases that may alter their retirement plans. Renewable Energy Projects represent a significant initial investment. Understanding what has motivated you to investigate Renewable Energy will make a difference when you decide if the investment is “worth it” for your household or business.

What does it cost?

That is like asking “what does a car cost”. First you need to determine your requirements. How big, how fancy, what kind of options, how powerful, how long do you want it to last. You can buy a sub-compact KIA for under $9000, or you can buy a Bentley for $200,000.
 
With Renewable Energy Systems, the questions are: how much electricity do you use per month, how much are you willing to conserve, what portion of your total usage do you want to produce, how much sun or wind does your house get, and is your home oriented to take advantage of solar energy.
 
Can you get Solar or Wind Energy system for under $10,000? Probably not. Do you have to spend $200,000? Probably not. The Solar Energy Industry Association and the American Solar Energy Society both state that the initial cost of a Solar Photovoltaic System is $8,000 to $10,000 per rated Kilowatt, and that the average Residential installation in the US is 1.5 to 2.5 KW. Our company, however, has average installation costs of $6,500 to $7,500 per rated Kilowatt. This translates to $11,000 to $20,000 for the “average” system we install, before rebates and incentives are applied.

The American Wind Industry Association statistics show that residential and small commercial Wind Energy Systems are a little more expensive for small units (1kw - 4kw) per rated Kilowatt, approximately $10,000 per installed KW. Initial start-up costs can be as low as $8000 per KW for larger units (5kw and larger) depending on the average wind speed at your site. Wind speeds can vary greatly within a few city blocks, so an accurate site evaluation is essential. Installation costs are highly variable, and cannot be done without a detailed site survey.

Solar PV Cost Example

This chart is based on a typical 1200 square foot house with 3-4 residents and a daily electrical usage of 23KWh, and based on Seattle City Light rates. Other electrical provider rates vary by area. The three lines represent the cost of a system producing 35%, 65% and 100% of your electrical usage.

Wind System Cost Example

There are three parts to a Wind Energy System: the Turbine, the Mounting System and the Installation.

The Turbine is priced based on the Kilowat/Hour production, and Small Wind turbines designed for Residential use are available in sizes from 500 watt (.5Kw) to 10 KW.  In general these turbines are in the $8,000 to $10,000 per KW range for systems with integrated inverters.

The Mounting Systems come in three types:

1. Free Standing Towers, called Mono-Poles
2. Guyed pole and lattice towers
3. Direct roof-mounted systems (for turbines 1kw or smaller only.)

The price will depend on which type of mounting system it is, and how tall it is.

Installation will depend on the type and height of the tower, the site conditions and access, and the soil bearing type.  Installation costs also include required Engineering Analysis of the soil type, the engineering of the size of the concrete foundation, and Building and Electrical permits. These fees also vary greatly depending on what jurisdiction you live in.

Having made all of the above disclaimers, here are a couple of examples:

• Example 1.   Gale 5 kW Vertical Access Wind Turbine installed on a 20-foot pole in King County.
  Total Cost including engineering, permits and instillation:    $40,000
  


• Example 2. Aerostar 10KW turbine mounted on an 80ft guyed lattice tower installed in Snohomish County.
  Total Cost including engineering, permits and instillation:    $72,900

Dual Systems

Want the best of both worlds? Install a dual system! You can have both Solar and Wind energy for your home. Think about it - out here when it's sunny there's not much wind and when it's windy there's not much sun. Here's a cost example of a dual system installed in King County:

• Gale 2.5 kW mounted on a 24-foot pole and a 5 panel (1.1 kW) Solar Electrical System mounted on the roof.
  Total Cost including engineering, permits and instillation:    $32,500