How Much Money Does A Wind Turbine Make

Written By Dan Blewett

How much does a wind turbine cost in 2021? As big as they are, it's no secret that these wind-powered monsters are expensive.

In today's article, we'll dive into the numbers: how much does a wind turbine cost, do they actually pay for themselves over time, and is the large upfront investment worth it? Off-shore wind farms are taking off with the Biden Administration in the United States, and all over the world, yet cost estimates for off-shore wind are more difficult to pin down than onshore wind.

In 2021, How Much Does a Wind Turbine Cost Initially?

For commercial wind turbines, the answer is millions of dollars per turbine.

Wind turbines cost a lot, and as such the investment is to be recouped over a long period of time.

Turbines produce significant electricity and sell it back to local power utilities where it flows to the power grid, used by homes and businesses.

The Breakdown of Initial Wind Turbine Costs

$2.6 – $4 million per average-sized commercial wind turbine
- Typical cost is $1.3 million per megawatt (MW) of electricity-producing capacity
- Most commercial wind turbines have a capacity of 2-3 MW, but offshore turbines can be as large as 12 MW
- Cost increases as turbine size increases, though there are benefits to using fewer, larger turbines – complexity and construction of the overall farm site is greatly reduced with fewer and larger turbines.

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Wind Turbine Maintenance Costs

Once built, maintenance is an ongoing expense.

1-2 cents per kilowatt-hour produced, or
$42,000 – $48,000 per year

Operation and maintenance costs can be significant, but all of these machines are long-term investments continue to (hopefully) pay for themselves over time.

A wind turbine study using German data showed that these costs can be 1-2 Eurocents per kilowatt hour (kWh) produced, on average.

This article claims that typical O&M cost is $42,000 – $48,000 per year in the United States, but that this number is also dropping as technology improves.

This number climbs as the the turbine ages, which is not surprising considering the wear and tear and harsh environments these machines operate in.

What Does Operation & Maintenance Consist of?

Operation & maintenance (O&M) is made up of the following:

Insurance
Land rent
Service, repair and spare parts
Administrative tasks
Power (it does take some electricity to run)
Miscellaneous

These recurring costs are not too significant, and the turbine will significantly outproduce the maintenance costs.

Repairs can be a significant capacity reducer (more on this later), and lightning strikes on wind turbines can be a real problem.

Though turbine blades leave the factor with a lightning protection system, often they are inadequate.

Especially for offshore wind turbines–where transporting workers for repair is costly and time-consuming–additional layers of lightning protection is important.

Products like segmented lightning diverters can provide additional protection from lightning strike damage to wind turbines.

How Much Electricity Does a Wind Turbine Produce?

We've covered costs, so now lets turn to the big question: how much electricity does a wind turbine generate?

Wind turbines are sized in megawatts (MW), which refers to their capacity to create electricity.

One megawatt = 1,000,000 watts of power.

One megawatt can power about 1000 homes for a month but in reality, wind turbines don't come close to producing their rated capacity because of changing wind speeds.

Size of the Wind Turbine Affects Electricity-Producing Capacity

Wind turbines cost more the bigger they get, but they produce more electricity with larger nacelles and turbine blades.

In 2019, it was reported that the average rotor diameter had risen to 129 meters (423 feet).

Common commercial wind turbine sizes in megawatts:

1.5 MW (onshore, or land-based)
2.5 MW (onshore)
4 MW (onshore)
6-8 MW (offshore)
Up to 15 MW (GE Haliade-X produces 12 MW and the Siemens Gamesa SG 14-222DD is a 15MW Turbine)

Offshore wind farms choose larger wind turbines in part because of the high cost of installing them and transporting the electricity, as well as the increased efficiency they gain with consistent, faster wind speeds.

It's preferable to build one turbine rather than many smaller ones because fewer towers and ground anchoring systems have to be constructed, making everything less complicated.

Wind Speed & Direction Affects "Capacity Factor" in Electric Production

At full wind speed, a turbine can produce at it's full capacity. If a turbine is rated for 2.5 MW, then at peak wind speed it will crank out 2.5 MW of power.

Yet, we all know that wind is never constant.

Because the wind dies down, changes direction, etc., overall averages will be much lower, usually in the 30-40% range for onshore wind turbines and up to 65% (occasionally higher in rare circumstances) for offshore turbines.

Biggest Wind Turbine: GE Haliade-X 12 MW Turbine

The GE Haliade-X is…insane.

This enormous wind turbine is the first to offer 12 MW capacity, with blades 107m (351 feet) long and an overall footprint that reaches 260m (853 feet) into the sky.

Turbines of this size are typically used offshore, where wind speeds are consistently much higher and delivering power is more complicated. Fewer, bigger turbines = easier power transport, fewer long-distance cables and a simpler overall system.

If you're curious how these turbines stay upright in the crazy waves and wind out to sea, check out this article featuring some great illustrations.

How Much Money Does a Wind Turbine Produce From Electricity it Generates?

Remember that a wind turbine has a maximum rated capacity (such as 4 megawatts), but it will only produce electricity at a "capacity factor" or "load factor" that is a percentage of this maximum.

In the chart below, you'll find some numbers based on the typical sale price (2019 data) of electrical power created by wind turbines. This power is sold back to the electrical grid of utility companies, and the price has been falling as turbine technology has improved.

This sale of electricity is how wind turbines pay for themselves and create renewable energy.

We want this power to be cheap, and it's moving in the right direction.

Wind Turbine Cost: How Much? Are They Worth It in 2021?

The goal is for turbines to produce at a higher capacity factor, which means they're creating more electricity for the time they're in operation.

Need Lightning Protection For Your Wind Turbine?

Our StrikeTape wind turbine segmented lightning diverters are the most durable, highest-performing product in the world. Wind turbine maintenance costs skyrocket when constantly damaged by lightning strikes, so protect your turbines with the best.

Use StrikeTape lightning protection on your wind farm.

How tall is a wind turbine?

The towers on most commercial wind turbines are in the range of 200-260 feet tall. The blades, often well over 100 feet long, when counted in total height push the number well into the 300s. The Gamesa G87 model wind turbine's blades reach a height of 399ft.

How fast does a wind turbine spin?

Wind turbine blade tip speeds regularly range from 120-180 miles per hour, though they vary due to wind conditions. Because of their enormous size (with blades well over 100ft), they look like they're spinning slowly, when in reality blade tip speeds are very, very fast.

What's the cost of a wind turbine in 2021?

$1,300,000 USD per megawatt. The typical wind turbine is 2-3 MW in power, so most turbines cost in the $2-4 million dollar range. Operation and maintenance runs an additional $42,000-$48,000 per year according to research on wind turbine operational cost.

Do they make small wind turbines for single homes?

They do, and these smaller turbines can now cost less than $1000. Energy production will vary greatly to the size, specs and wind conditions of a person's home, and some homes may not be suited well for a turbine at all. There's a reason that wind farms are carefully placed in very wind, often harsh conditions–high winds occur in places people often don't want to live. If your home doesn't get consistent, strong wind, it may not make financial sense to install any type of wind turbine.

Do birds get hit by wind turbine blades?

How many homes can one wind turbine power?

Though this number can vary greatly due to factors such as size, wind conditions, repairs, and blade length, a typical wind turbine can power 1000-2000 homes in one year. One megawatt of energy production capacity will power about 1000 homes, and many onshore wind turbines have a 2-3 MW capacity.

What is capacity factor for wind turbines?

The capacity factor–or load factor–is the actual power generation over time, rather than the theoretical maximum a turbine could produce. Because wind turbines cant possibly maintain peak production at all times (not even close) due to changing wind conditions, downtime for service, etc. – it's important to consider capacity factor into how much expected power a turbine will produce over a year or more.