Projected Electricity Prices

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Generating Income from the Wind
After the small wind turbine is installed on the SHARE farm, the investor or grower receives income from grants, tax credits and the sale of excess electricity. The federal Investment Tax Credit or Renewable Energy Grant offsets 30 percent of the installation costs.  The Renewable Energy Grant is received within 60 days of connecting the turbine to the grid.  In Wisconsin, the Focus on Energy program rebates up to 25 percent of the installation costs on systems 100 kW or less in size and is also received within 60 days of grid connection.  And certain electric utilities in the state provide additional incentives for businesses that install small renewable energy systems.

The income created from the sale of excess wind generated electricity supplies the investor with a stable and dependable revenue stream.  Through a program called net metering, excess electricity produced by the wind turbine will spin the electricity meter backwards. This provides the customer with full retail value for all the electricity produced.  In Minnesota, state law requires that all utilities allow net metering on renewable systems of 40 kW or less while under Wisconsin law the maximum system size is 20 kW or less.  It should be noted, however, that 90% of all Wisconsin utilities permit net metering on systems 40 kW or less and WE Energies permits 100 kW or less systems to take advantage of the program.

Electricity prices are projected to increase in the medium-term as a result of numerous factors.   The Federal Energy Information Administration projects that electricity prices begin to rise steadily after 2015, as fuel prices increase more rapidly and the need for new capacity grows. Because of the net metering program, increased electricity rates results in higher annual revenue for the renewable system owner.