Wind Energy Payback Period Workbook (v1.

0)
Step 1: Financial Assumptions

Step 2: Site Characteristics

Step 3: System Properties

Payback Period (Years) 0

A simple payback period could not be calculated based on the information that
you have selected. Please check your assumptions and try again.

My one concern about this illustrati

A simple payback period could not be calculated based on the information that you have selected. Please check your
Based on the assumptions that you entered, this investment looks very attractive. The payback period is 0. That mean
Based on the assumptions that you entered, this investment appears only marginally attractive. The payback period is
Based on the assumptions that you entered, this investment does not look very attractive. The payback period is 0. Th
Bad
 My one concern about this illustration is that it still looks like the turbine is attached to the cabin's roof and many of our reports and publica

u have selected. Please check your assumptions and try again.

The payback period is 0. That means that your initial capital investment will be fully recovered within 0 years of the purchase. However, thi
ally attractive. The payback period is 0. That means that your initial capital investment will be fully recovered within 0 years of the purchase.
tractive. The payback period is 0. That means that your initial capital investment will not be fully recovered until 0 years of the purchase. Ho
and many of our reports and publications say you should not mount a small turbine on the roof of a building.

years of the purchase. However, this simplified analysis is only preliminary. Please conduct a more thourough analysis before proceeding.
ered within 0 years of the purchase. However, this analysis is only preliminary. Please conduct a more thourough analysis before proceedin
red until 0 years of the purchase. However, this analysis is only preliminary. Please conduct a more thourough analysis before proceeding.
urough analysis before proceeding.
thourough analysis before proceeding.
urough analysis before proceeding.
Payback Period = 0 years Please make a selection using the radio buttons below:
Step 1: Financial Assummptions
3
User-Defined
Mortgage Loan Cash
Financing
Downpayment Percentage (%) 10% 10% 100%
Interest Rate (%/year) 6.5% 10.0% 0.0%
Marginal Effective Income Tax Rate (%/year) 30% 0% 0%
Debt Term (years) 30 15 0
adio buttons below:

Must be greater than 0 and less than or equal to 100%.

Must be greater than or equal to 0 and less than 20%. Current mortage rates are around 7%.
Must be greater than or equal to 0 and less than the highest marginal tax rate.
Must be greater than or equal to 0 and less than or equal to 30.
Payback Period = 0 years Please make a selection using the radio buttons below:
Step 2: Site Characteristics
2
Great Class 6 Site Class 4 Site Class 6
Plains Site High
Elevation
Site Properties
Average Wind Speed (meters/second) 8.0 6.7 5.8 6.7
Anemometer Height (meters) 50.0 10.0 10.0 10.0
Wind Shear Exponent 0.143 0.143 0.143 0.143
Weibull k 2.3 2.0 2.0 2.0
Site Elevation (meters) 800 0 0 2,000
Avoided Energy Costs
Average Cost of Electricity ($/kWh) 0.07 0.07 0.07 0.07
Nominal Electricity Escalation Rate (%/year) 2.00% 2.00% 2.00% 2.00%
o buttons below:

Class 4 User-
High Defined
Elevation Site

5.8 Average site wind speed, expressed in m/s.

10.0 Anemometer height is in meters and is height at which the average wind speed was measured. If unknown, use 10 meters.
0.143 Wind shear exponent may be assumed to be "1/7" or 0.143 for smooth terrain. For flat terrain with some surface roughness (t
2.0 If Weibull k is not known, use k = 2 for inland sites, use 3 for coastal sites, and use 4 for island sites and trade wind regimes.
2,000

0.07 Average price of electricity from current provider.

2.00% Expected rate of electricity price increase, includes inflation.
measured. If unknown, use 10 meters.
at terrain with some surface roughness (the Great Plains) use 0.20. For very smooth terrain or open water use 0.10.
for island sites and trade wind regimes.
Payback Period = 0 years Please make a selection using the radio buttons below:
Step 3: System Properties
2
AOC 15/50 Wind WTIC Jacobs Whisper H175 User Defined
BW Excel - S/60
Turbine 29-20 (WPT 3000) System
System Costs
Total Installed Cost ($) $101,742 $33,504 $28,392 $8,214
Variable Costs ($/kWh) $0.015 $0.005 $0.005 $0.005
Nominal Variable Cost Escalation Rate (%/year) 2.00% 2.00% 2.00% 2.00%
Fixed Costs ($/kW) $0.000 $0.000 $0.000 $0.000
Nominal Fixed Cost Escalation Rate (%/year) 2.00% 2.00% 2.00% 2.00%
Physical Characteristics
Rated Power (kW) 50 10 17.5 3
Rotor Hub Height (m) 24 30 30 24
Availability (%) 98% 98% 98% 98%
Performance Margin 0.0% 0.0% 0.0% 0.0%
Performance Derating 10.0% 10.0% 10.0% 10.0%
Power Curve (Wind Turbine Power (kW) @ x m/s)
If expressed in miles/hour, convert to meters/second by multiplying by 2.24.
1 m/s 0.00 0.00 0.00 0.00
2 0.00 0.00 0.00 0.00
3 0.00 0.00 0.00 0.00
4 0.00 0.25 0.70 0.16
5 4.40 0.80 1.30 0.39
6 8.90 1.65 2.30 0.72
7 15.60 2.55 3.40 0.99
8 24.40 3.65 5.10 1.41
9 33.00 4.85 7.40 1.86
10 44.00 6.15 10.30 2.52
11 50.00 7.50 13.70 3.12
12 55.00 9.00 17.50 3.39
13 58.00 9.50 17.50 3.54
14 62.00 10.00 17.50 3.60
15 64.00 8.00 17.10 3.54
16 66.00 6.00 6.10 3.48
17 65.00 2.70 5.40 3.33
18 64.00 3.00 5.40 3.27
19 64.00 3.00 5.40 3.21
20 64.00 3.00 5.40 3.12
21 63.00 3.00 5.40 3.12
22 63.00 3.00 5.40 3.12
23 63.00 3.00 5.40 3.12
24 63.00 3.00 5.40 3.12
25 63.00 3.00 5.40 3.12
Total
Initial installed cost including
variable production applicable
costs. Typicallysales tax.
$0.015/kWh for large grid-connected wind turbines, and lower for small wind turbines with fewer moving parts.

Variable production cost escalation rate, includes inflation. 0-5% if typical.

Initial fixed production costs.
Fixed production cost escalation rate, includes inflation. 0-5% is typical.

Availability is an allowance for wind turbine downtime. Availability of 95 - 98 % is typical.

Performance margin is a derating that accounts for unusable energy (e.g. when batteries are full) and adds a margin of safety in satisfying load requirements. Use 0.0 for grid-connected applications. Use 0.05 (5%) for remote homes and village power s
Performance Derating is a derating of the wind turbine power curve for wind turbulence, product variability, and other factors that affect performance.
emote homes and village power sites with back-up power. Use 0.15 (15%) - 0.25 (25%) for telecommunication applications with back-up power. Use 0.2 (20%) - 0.4 (40%) for high-priority loads at sites without back-up power (should have solar component).
d have solar component).
C a s h F lo w (R e v e n u e - E x p e n s e )

30-Year Nominal Dollar Cash Flow

$50,000
Cash-Flow
Cumulative Net Cash-Flow
$40,000

$30,000

$20,000

$10,000

$0

-$10,000

-$20,000

-$30,000

-$40,000 Investment Year

 Wind Turbine Power (kW)
12
kW Output

10

0
0 5 10 15 20 25
Wind Speed (meters per second)
Result

Payback Period (SPB) #VALUE! Number of years before initial investment is fully recovered.
Rate of Return (IRR) 5% Annual return on initial investment.
Net Present Value (NPV) $40,105 Present-day investment value if discounted at the after-tax interest rate.

Summary Assumptions

Power Output (kWh/year) 27,367

Average Cost of Electricity ($/kWh) $0.07
Nominal Electricity Escalation Rate (%/year) 2.00%

Total Installed Cost $33,504

Downpayment (%) 100.00%
Debt Term (years) 0
Interest Rate (%/year) 0.00%
Marginal Effective Tax Rate (%/year) 0.00%

Variable Cost ($/kWh) $0.01

Nominal Variable Cost Escalation Rate (%/year) 2.00%
Rated Power (kW) 10
Fixed Cost ($/kWh) $0.00
Nominal Fixed Cost Escalation Rate (%/year) 2.00%

30-Year Nominal Cash-Flow (All units are expressed as dollars unless otherwise noted)

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Revenue
Power Output (kWh/year) (A) 27,367 27,367 27,367 27,367 27,367 27,367 27,367 27,367 27,367 27,367 27,367 27,367 27,367 27,367 27,367 27,367 27,367 27,367 27,367 27,367 27,367 27,367 27,367 27,367 27,367 27,367 27,367 27,367 27,367 27,367
Avoided Cost of Electricity ($/kWh) (B) $0.071 $0.073 $0.074 $0.076 $0.077 $0.079 $0.080 $0.082 $0.084 $0.085 $0.087 $0.089 $0.091 $0.092 $0.094 $0.096 $0.098 $0.100 $0.102 $0.104 $0.106 $0.108 $0.110 $0.113 $0.115 $0.117 $0.119 $0.122 $0.124 $0.127
Total Revenue (A*B) $1,954 $1,993 $2,033 $2,074 $2,115 $2,157 $2,201 $2,245 $2,289 $2,335 $2,382 $2,430 $2,478 $2,528 $2,578 $2,630 $2,682 $2,736 $2,791 $2,847 $2,904 $2,962 $3,021 $3,081 $3,143 $3,206 $3,270 $3,335 $3,402 $3,470
Expenses
Initial Capital Expenditure (Downpayment) $33,504
Amount Financed $0
Total Debt Payment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Before-Tax Debt Interest Payment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Debt Principal Payment (C) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
After-Tax Debt Interest Payment (D) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Variable Costs (E) $140 $142 $145 $148 $151 $154 $157 $160 $164 $167 $170 $174 $177 $181 $184 $188 $192 $195 $199 $203 $207 $212 $216 $220 $224 $229 $234 $238 $243 $248
Fixed Costs (F) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Expenses (C+D+E+F) $140 $142 $145 $148 $151 $154 $157 $160 $164 $167 $170 $174 $177 $181 $184 $188 $192 $195 $199 $203 $207 $212 $216 $220 $224 $229 $234 $238 $243 $248
Net Cash-Flow -$33,504 $1,814 $1,851 $1,888 $1,926 $1,964 $2,003 $2,043 $2,084 $2,126 $2,168 $2,212 $2,256 $2,301 $2,347 $2,394 $2,442 $2,491 $2,541 $2,591 $2,643 $2,696 $2,750 $2,805 $2,861 $2,918 $2,977 $3,036 $3,097 $3,159 $3,222
Cumulative Net Cash-Flow -$33,504 -$31,690 -$29,839 -$27,951 -$26,025 -$24,061 -$22,058 -$20,015 -$17,931 -$15,805 -$13,636 -$11,424 -$9,168 -$6,867 -$4,520 -$2,126 $316 $2,807 $5,348 $7,939 $10,583 $13,279 $16,029 $18,834 $21,695 $24,614 $27,591 $30,627 $33,724 $36,883 $40,105
 = Calculated Values
= User Selected Values

Financial Assumptions

Downpayment Percentage (%) 1

Interest Rate (%/year) 0
Marginal Effective Income Tax Rate (%/year) 0
Debt Term (years) 0

Site Characteristics

Site Properties
Average Wind Speed (m/s) 6.7
Anemometer Ht (m) 10
Wind Shear Exponent 0.143
Weibull k 2
Site Elevation (m) 0
Avoided Energy Costs
Average Cost of Electricity ($/kWh) 0.07
Nominal Electricity Escalation Rate (%/year) 0.02

System Characteristics

System Costs
Total Installed Cost ($/kW) 33504
Variable Costs ($/kWh) 0.005
Nominal Variable Cost Escalation Rate (%/year) 0.02
Fixed Costs ($/kW) 0
Nominal Fixed Cost Escalation Rate (%/year) 0.02
Physical Characteristics
Rated Power (kW) 10
Rotor Hub Height (m) 30
Availability (%) 0.98
Performance Margin 0
Performance Derating 0.1

Hub Height Average Wind Speed (m/s) 7.84

Air Density Factor 1.00
Average Annual Power Output (kWh) 27367
Implied Capacity Factor 31%

Contribution to
Wind Speed Average Wind
Wind Turbine
Probability (%) Turbine Power
Wind Speed (m/s) Power (kW)
(kW)
1 0 2.54% 0.00
2 0 4.90% 0.00
3 0 6.89% 0.00
4 0.25 8.39% 0.02
5 0.8 9.34% 0.07
6 1.65 9.72% 0.14
7 2.55 9.60% 0.22
8 3.65 9.04% 0.29
9 4.85 8.17% 0.35
10 6.15 7.10% 0.39
11 7.5 5.96% 0.39
12 9 4.84% 0.38
13 9.5 3.80% 0.32
14 10 2.89% 0.25
15 8 2.13% 0.15
16 6 1.52% 0.08
17 2.7 1.06% 0.03
18 3 0.71% 0.02
19 3 0.47% 0.01
20 3 0.30% 0.01
21 3 0.18% 0.00
22 3 0.11% 0.00
23 3 0.06% 0.00
24 3 0.04% 0.00
25 3 0.02% 0.00

Totals 99.76% 3.12