Tool developed to analyze small wind turbine investments
Victory Electric and other Kansas electric cooperatives have seen an increase in the number of requests from our member-owners for information about owning renewable energy systems, particularly wind.
In response, staff at Kansas Electric Cooperatives(KEC), Sunflower, and Midwest Energy have developed the “Small Wind Cash Flow model” – a spreadsheet tool – that can help you analyze the economics of investing in a small wind generator.
The model allows you to input several variables that have an impact on the economic viability of a small wind machine. Once these variables are entered, the tool then calculates annual cash flows and the net present value of the project.
These variables include project costs and grants, cost of debt financing, O&M costs, amount of electricity generated and consumed, the retail electric rate, the utility’s avoided cost, project life and cash flow discount rate.
“Many cooperative members are interested in owning renewable energy systems, particularly wind, for their homes, businesses, or farming operations,” said KEC’s Doug Shepherd. “A common question asked is how much money can be saved in future electricity costs in comparison to the investment. This model can help analyze the economics of investing in a small wind turbine.”
The model can be downloaded here.