You don’t have to be an industrialist to succeed in the renewable energy industry. Yes, but the most talked-about virgin investment channel wind energy requires a capital expenditure of Rs 30-35 lakh.
According to V V Shanta Raman, secretary of the Indian Wind Turbine Manufacturers Association, an individual will need to pay close to Rs 1 crore to install the lowest capacity wind generator of 250 kilowatt (the smallest capacity that may be installed). Banks lend about 70% of the project cost to establish a wind generator since it is classified as green energy.
If you believe it will be difficult to raise even Rs 30-35 lakh, a group of 10 to 15 people can form an association and invest in a wind farm estate named Madhya Pradesh Windfarms (MP Windfarms). Small investors are the target market for this wind farm.
Consolidated Energy Consultants owns a 51% share in MP Windfarms, the Madhya Pradesh government owns a 25% stake through MP Urja Vikas Nigam, and the central government owns the remaining 24% through the Indian Renewable Energy Development Agency.
The benefit of investing in a wind turbine is that for the first year, 80 percent of the project cost is considered accelerated depreciation, resulting in a tax benefit for sustainable energy.
Wind energy is produced at any specified windy place in the state as a result of central and state-level policy involvement. The generated energy, which is fed into the State Electricity Board’s system, can be sold to electricity boards or used for captive consumption and third-party selling in exchange for wheeling fees.
As of March 31, 2005, India has a total installed capacity of over 3,595 megawatts. Tamil Nadu and Karnataka are viewed as potential states for wind energy development and revenue generating through energy sales to power boards.
The Tamil Nadu Electricity Board pays approximately Rs 2.70 per unit, while the Karnataka Electricity Board pays approximately Rs 3.25 per unit.
A 250 kilowatt generator may generate about 5.6 lakh units of renewable energy in the first year after installation, according to Raman.
So, based on an initial estimate, a person who invests in a wind turbine will earn around Rs 13 lakh in the first year by selling energy to the state power board. A wind turbine, according to Raman, takes five to six years to break even and has a 20-year lifespan.
The annual cost of operation and maintenance, including insurance, is between Rs 40,000 and Rs 50,000. The installation of wind turbines is covered by a one-year guarantee.
The good news for anyone considering a wind energy investment is that wind turbine manufacturers can help with everything from planning to installation. Suzlon and NEG Micon feature a 750-1,650 kilowatt wind generator. Wind turbine manufacturers also look for a suitable area to install and service their machines.
To install a 250 kw wind generator, simply contact one of the wind turbine manufacturers, such as Shriram EPC, Pioneer Asia Wind Turbine, Vestas RRB, or NEPC India.
Wind data is collected by the ministry of non-conventional energy sources through the installation of sophisticated computerized data loggers at more than 500 locations because wind is highly site-specific and can vary substantially even at a distance of 1 km.
- Because wind energy is classified as non-conventional energy, it is eligible for an 80 percent depreciation deduction in the first year. All other investments worth more than Rs 1 lakh are taxed by the government.
- Banks lend 70% of the project cost as a loan with a 9% interest rate for wind energy installation. For a 250 kilowatt wind turbine, the minimum installation cost is Rs 1 crore. As a result, an individual will need to invest up Rs 30-35 lakh up front, with the remaining funds coming from bank loans.
- The energy generated can be sold to state-run power companies. Almost half of what individuals invest 1/2 close to Rs 14 lakh 1/2 can be earned as revenue in the first year of operations. The funds can also be used to pay down a portion of the debt.
- The annual cost of operation, maintenance, and insurance is between Rs 40,000 and Rs 50,000. On an installed wind turbine, the manufacturer provides a one-year warranty.
- When compared to traditional energy, wind energy is considered to be one of the most environmentally benign sources of energy.
What is the price of a wind turbine?
Per megawatt, the cost is $1,300,000.00 USD. Because the average wind turbine has a power output of 2-3 MW, most turbines cost between $2 and $4 million. According to research on wind turbine operational costs, operation and maintenance costs an additional $42,000-$48,000 per year.
Is it possible for me to purchase a wind turbine?
Wind turbines are available for usage by everyone from homeowners to utilities, as well as private and business entities. Cash can be used to purchase small wind turbines, and commercial-scale projects can be financed. See the website’s small wind section for further information on small projects, such as those for a home, ranch, or business that are less than or equal to 100 kilowatts (kW).
What will a wind turbine cost in 2020?
Wind turbine prices have dropped dramatically from a decade ago, from $1,800 per kilowatt (kW) in 2008 to $770-850 per kilowatt (kW) now. The value of the health and climate advantages of wind energy built in 2020 was estimated to be $76 per MWh, significantly more than the cost of wind energy.
What does a 20-kilowatt wind turbine cost?
Wind turbines are not inexpensive as an alternative energy source. Massive wind turbines can cost tens of millions of dollars. When you consider that a 15kw wind turbine might cost up to $125,000, you can infer that a 20kw wind turbine will cost even more. It’s safe to assume that it’ll set you back more than $125,000.
What is the size of a 5kW wind turbine?
The R9000 is one of the most popular compact wind turbines in the UK, and it is also one of the most efficient.
With a 5kW power rating and a 5.5 diameter rotor, it can start generating energy at low wind speeds and maintain performance at greater speeds. One of the reasons it has been the tiny windmill of choice in the United Kingdom is because of this.
The R9000 was designed with robustness, high reliability, and little maintenance in mind, with the rotor bearing, yaw bearing, and pitch bearings being the only worn parts.
Moreover, its dependability is guaranteed by millions of running hours in the field, where its exceptional durability and low maintenance requirements have been put to the test by thousands of homes, farms, and companies all over the world.
Is it profitable to build wind farms?
Because wind turbines are so expensive to purchase up front, it can take a long time to recoup your investment. It is estimated that a wind turbine will pay for itself in around 15 years.
Because most wind turbines have a 25-year life expectancy, the turbine will be paying for itself for the next ten years.
In comparison to larger turbines, smaller wind turbines are extremely economical.
Because the cost of upkeep is so much cheaper, the potential for profit is significantly greater.
A wind farm can make anywhere from $3,000 to $10,000 per year, depending on the size of the turbine and the amount of electricity produced.
This might result in a profit of between $2,200 and $9,200 per year for a modest turbine of roughly 10kW.
Unless you have a large number of huge turbines, adding more of them will likely be less lucrative for a while.
This is due to the fact that the expense of upkeep is significantly higher and the return rate is much lower.