Wind Energy Payback Period Workbook (v1.

0)
Step 1: Financial Assumptions
Step 2: Site Characteristics
Step 3: System Properties

Payback Period (Years)

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 a
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, this
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
ed until 0 years of the purchase. However, this analysis is only preliminary. Please conduct a more thourough analysis before proceeding.

rough analysis before proceeding.

hourough analysis before proceeding.
rough analysis before proceeding.

Payback Period = 0 years

Step 1: Financial Assummptions

3

Please make a selection using the radio buttons below:

Mortgage
Downpayment Percentage (%)
Interest Rate (%/year)
Marginal Effective Income Tax Rate (%/year)
Debt Term (years)

10%
6.5%
30%
30

Loan
10%
10.0%
0%
15

Cash
100%
0.0%
0%
0

User-Defined
Financing

dio 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

Step 2: Site Characteristics

2

Please make a selection using the radio buttons below:

Great
Class 6 Site Class 4 Site
Plains Site
Site Properties
Average Wind Speed (meters/second)
Anemometer Height (meters)
Wind Shear Exponent
Weibull k
Site Elevation (meters)
Avoided Energy Costs
Average Cost of Electricity ($/kWh)
Nominal Electricity Escalation Rate (%/year)

Class 6
High
Elevation

8.0
50.0
0.143
2.3
800

6.7
10.0
0.143
2.0
0

5.8
10.0
0.143
2.0
0

6.7
10.0
0.143
2.0
2,000

0.07
2.00%

0.07
2.00%

0.07
2.00%

0.07
2.00%

o buttons below:

Class 4
High
Elevation

UserDefined
Site

5.8
10.0
0.143
2.0
2,000

Average site wind speed, expressed in m/s.

0.07
2.00%

Average price of electricity from current provider.

Anemometer height is in meters and is height at which the average wind speed was measured. If unknown, use 10 met

Wind shear exponent may be assumed to be "1/7" or 0.143 for smooth terrain. For flat terrain with some surface roughn

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 reg

Expected rate of electricity price increase, includes inflation.

measured. If unknown, use 10 meters.

lat terrain with some surface roughness (the Great Plains) use 0.20. For very smooth terrain or open water use 0.10.

4 for island sites and trade wind regimes.

Payback Period = 0 years

Step 3: System Properties

2

Please make a selection using the radio buttons below:

AOC 15/50 Wind

Turbine
System Costs
Total Installed Cost ($)
$101,742
Variable Costs ($/kWh)
$0.015
Nominal Variable Cost Escalation Rate (%/year)
2.00%
Fixed Costs ($/kW)
$0.000
Nominal Fixed Cost Escalation Rate (%/year)
2.00%
Physical Characteristics
Rated Power (kW)
50
Rotor Hub Height (m)
24
Availability (%)
98%
Performance Margin
0.0%
Performance Derating
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
2
0.00
3
0.00
4
0.00
5
4.40
6
8.90
7
15.60
8
24.40
9
33.00
10
44.00
11
50.00
12
55.00
13
58.00
14
62.00
15
64.00
16
66.00
17
65.00
18
64.00
19
64.00
20
64.00
21
63.00
22
63.00
23
63.00
24
63.00
25
63.00

BW Excel - S/60

WTIC Jacobs
29-20

Whisper H175
(WPT 3000)

$33,504
$0.005
2.00%
$0.000
2.00%

$28,392
$0.005
2.00%
$0.000
2.00%

$8,214
$0.005
2.00%
$0.000
2.00%

10
30
98%
0.0%
10.0%

17.5
30
98%
0.0%
10.0%

3
24
98%
0.0%
10.0%

0.00
0.00
0.00
0.25
0.80
1.65
2.55
3.65
4.85
6.15
7.50
9.00
9.50
10.00
8.00
6.00
2.70
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00

0.00
0.00
0.00
0.70
1.30
2.30
3.40
5.10
7.40
10.30
13.70
17.50
17.50
17.50
17.10
6.10
5.40
5.40
5.40
5.40
5.40
5.40
5.40
5.40
5.40

0.00
0.00
0.00
0.16
0.39
0.72
0.99
1.41
1.86
2.52
3.12
3.39
3.54
3.60
3.54
3.48
3.33
3.27
3.21
3.12
3.12
3.12
3.12
3.12
3.12

User Defined
System

Total
including
applicable
sales
tax.
Initialinstalled
variable cost
production
costs.
Typically
$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 site
Performance Derating is a derating of the wind turbine power curve for wind turbulence, product variability, and other factors that affect performance.

ote 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).

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
$40,000

Cash-Flow
Cumulative Net Cash-Flow

$30,000
$20,000
$10,000
$0
-$10,000
-$20,000
-$30,000
-$40,000

Investment Year

Wind Turbine Power (kW)

kW Output

12

10

0
0

10

15

Wind Speed (meters per second)

20

25

Result
Payback Period (SPB)
Rate of Return (IRR)
Net Present Value (NPV)

#VALUE! Number of years before initial investment is fully recovered.

5% Annual return on initial investment.
$40,105 Present-day investment value if discounted at the after-tax interest rate.

Summary Assumptions
Power Output (kWh/year)
Average Cost of Electricity ($/kWh)
Nominal Electricity Escalation Rate (%/year)
Total Installed Cost
Downpayment (%)
Debt Term (years)
Interest Rate (%/year)
Marginal Effective Tax Rate (%/year)
Variable Cost ($/kWh)
Nominal Variable Cost Escalation Rate (%/year)
Rated Power (kW)
Fixed Cost ($/kWh)
Nominal Fixed Cost Escalation Rate (%/year)

27,367
$0.07
2.00%
$33,504
100.00%
0
0.00%
0.00%
$0.01
2.00%
10
$0.00
2.00%

30-Year Nominal Cash-Flow (All units are expressed as dollars unless otherwise noted)
0

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

27,367
$0.071
$1,954

27,367
$0.073
$1,993

27,367
$0.074
$2,033

27,367
$0.076
$2,074

27,367
$0.077
$2,115

27,367
$0.079
$2,157

27,367
$0.080
$2,201

27,367
$0.082
$2,245

27,367
$0.084
$2,289

27,367
$0.085
$2,335

27,367
$0.087
$2,382

27,367
$0.089
$2,430

27,367
$0.091
$2,478

27,367
$0.092
$2,528

27,367
$0.094
$2,578

27,367
$0.096
$2,630

27,367
$0.098
$2,682

27,367
$0.100
$2,736

27,367
$0.102
$2,791

27,367
$0.104
$2,847

27,367
$0.106
$2,904

27,367
$0.108
$2,962

27,367
$0.110
$3,021

27,367
$0.113
$3,081

27,367
$0.115
$3,143

27,367
$0.117
$3,206

27,367
$0.119
$3,270

27,367
$0.122
$3,335

27,367
$0.124
$3,402

27,367
$0.127
$3,470

$0
$0
$0
$0
$140
$0
$140

$0
$0
$0
$0
$142
$0
$142

$0
$0
$0
$0
$145
$0
$145

$0
$0
$0
$0
$148
$0
$148

$0
$0
$0
$0
$151
$0
$151

$0
$0
$0
$0
$154
$0
$154

$0
$0
$0
$0
$157
$0
$157

$0
$0
$0
$0
$160
$0
$160

$0
$0
$0
$0
$164
$0
$164

$0
$0
$0
$0
$167
$0
$167

$0
$0
$0
$0
$170
$0
$170

$0
$0
$0
$0
$174
$0
$174

$0
$0
$0
$0
$177
$0
$177

$0
$0
$0
$0
$181
$0
$181

$0
$0
$0
$0
$184
$0
$184

$0
$0
$0
$0
$188
$0
$188

$0
$0
$0
$0
$192
$0
$192

$0
$0
$0
$0
$195
$0
$195

$0
$0
$0
$0
$199
$0
$199

$0
$0
$0
$0
$203
$0
$203

$0
$0
$0
$0
$207
$0
$207

$0
$0
$0
$0
$212
$0
$212

$0
$0
$0
$0
$216
$0
$216

$0
$0
$0
$0
$220
$0
$220

$0
$0
$0
$0
$224
$0
$224

$0
$0
$0
$0
$229
$0
$229

$0
$0
$0
$0
$234
$0
$234

$0
$0
$0
$0
$238
$0
$238

$0
$0
$0
$0
$243
$0
$243

$0
$0
$0
$0
$248
$0
$248

Revenue
Power Output (kWh/year) (A)
Avoided Cost of Electricity ($/kWh) (B)
Total Revenue (A*B)

Expenses
Initial Capital Expenditure (Downpayment)
Amount Financed
Total Debt Payment
Before-Tax Debt Interest Payment
Debt Principal Payment (C)
After-Tax Debt Interest Payment (D)
Variable Costs (E)
Fixed Costs (F)
Total Expenses (C+D+E+F)

Net Cash-Flow
Cumulative Net Cash-Flow

$33,504
$0

-$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

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

1
0
0
0

Site Characteristics
Site Properties
Average Wind Speed (m/s)
Anemometer Ht (m)
Wind Shear Exponent
Weibull k
Site Elevation (m)
Avoided Energy Costs
Average Cost of Electricity ($/kWh)
Nominal Electricity Escalation Rate (%/year)

6.7
10
0.143
2
0
0.07
0.02

System Characteristics
System Costs
Total Installed Cost ($/kW)
Variable Costs ($/kWh)
Nominal Variable Cost Escalation Rate (%/year)
Fixed Costs ($/kW)
Nominal Fixed Cost Escalation Rate (%/year)
Physical Characteristics
Rated Power (kW)
Rotor Hub Height (m)
Availability (%)
Performance Margin
Performance Derating
Hub Height Average Wind Speed (m/s)
Air Density Factor
Average Annual Power Output (kWh)
Implied Capacity Factor

Wind Speed (m/s)

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
Totals

33504
0.005
0.02
0
0.02
10
30
0.98
0
0.1
7.84
1.00
27367
31%

Wind Turbine
Power (kW)
0
0
0
0.25
0.8
1.65
2.55
3.65
4.85
6.15
7.5
9
9.5
10
8
6
2.7
3
3
3
3
3
3
3
3

2.54%
4.90%
6.89%
8.39%
9.34%
9.72%
9.60%
9.04%
8.17%
7.10%
5.96%
4.84%
3.80%
2.89%
2.13%
1.52%
1.06%
0.71%
0.47%
0.30%
0.18%
0.11%
0.06%
0.04%
0.02%

Contribution to
Average Wind
Turbine Power
(kW)
0.00
0.00
0.00
0.02
0.07
0.14
0.22
0.29
0.35
0.39
0.39
0.38
0.32
0.25
0.15
0.08
0.03
0.02
0.01
0.01
0.00
0.00
0.00
0.00
0.00

99.76%

3.12

Wind Speed
Probability (%)