How To Reduce Your Small Wind Turbine Cost

As of the end of 2008, Congress revised the Emergency Emergency Economic Stabilization Act of 2008, which a includes a provision where households, farms and corporates can now offset a portion of their small wind turbine cost against their tax.

The Act offers a federal tax credit for 30% of the total installed cost of any wind power system with a 100 kilowatt capacity or less, but the credit will not exceed $4,000. The limitation of the Act is that it only applies to new systems installed from 3 October 2008 through to December 2016, so any current systems will get no tax relief. In addition, for home wind turbines, the credit is further limited to the lesser of $4,000 or $1,000 per kW of capacity.

Traditionally North America has had the largest market in the small wind turbine industry, but lately it was getting under-cut by its European rivals who offered greater tax relief for small wind turbine systems. So the tax incentives were very much loved by Ron Stimmel, a small wind advocate for the American Wind Energy Association (AWEA), who said:

"The AWEA thanks President Bush for acknowledging and promoting the role of small wind power solutions towards our energy security and environmental concerns. These subsidies will promote Americans to save on energy costs, while reducing global warming in a big way."

Being the first federal tax subsidy for small wind turbines since 1985, industry analysts believe it could help inflate the United States wind power market by over forty-percent a year. Not to mention the equipment certification scheme that, together with the Act, could help secure America as the global market leader.

The legislation was brought about thanks to the AWEA's persistent requests for the the wind power market to be able to compete equally with the solar power industry. The AWEA was determined for small wind turbine owners to receive a 30% tax credit on the cost, provided their systems were no bigger than one kilowatts.

Since the two markets compete in the same renewable energy industry, the Act also provides tax relief for solar power systems of 30 percent of the cost, restricted to $4000. Larger, commercial solar energy solutions get the same, but unrestricted 30% credit.

How does the new legislation influence privately made small wind turbines? It looks like do-it-yourself wind power systems can receive some tax incentives, as long as it can be shown when and how much costs were. Just remember, to get professional legal advice to help you enjoy the best tax credit due.

With the new tax credit, coupled with potential state-side credits, we cannot see a better time for anyone to invest in their own renewable energy system at home and offset the wind turbine cost. Whether this means getting an expensive professionally installed solar/wind power hybrid, or learning to do it yourself, potential electricity savings are a decision away. At the end of the day the choice is yours.