Small Wind Energy

Systems
On the inside --

Answers

to questions

that will help

you decide

whether small

scale wind energy

development can

work for you

innesotas wind energy resource is attracting the interest of individual farmers, business owners, and other landowners as well as of utilities and large-scale developers.
Developers find wind energy attractive for a variety of reasons, including its potential economic benefits and its less harmful impact on the environment when compared to coal
and other electric power sources.
The Minnesota legislature is spurring development of the states wind energy resource: in
1995 it required Northern States Power utility to install 425 megawatts of wind energy by
2002. Then, to encourage more widespread investment in wind energy, the 1997 legislature
provided for incentive payments to assist small commercial development. Other assistance is
also available for small developers (see page 8).

The Minnesota Department of Public Service (DPS) assists wind energy development by collecting data at wind monitoring sites around the state, analyzing energy potential based on
these data, and making the information available to any interested person. The goal is to provide the public with reliable information on energy potential, helping individuals to more
accurately assess the advisability of investing in wind energy.
This brochure is written for those interested in buying small-scale wind energy systems. It
gives them the information they need for an initial screening to determine whether further
investment is justified. It answers these questions:
How can wind power work for me?
Is my business, farm, or household on a good wind site?
How much does a wind system cost and how much will it save me?
How do I choose the right system?
Where can I go for more help and detailed information?

How can wind power work for me?

Harnessing wind power is not a new idea, but the appearance, design, and technology of
wind machines have changed considerably from the old-style water pumping windmill of the
past.
The system consists of a windmill (or turbine) that drives an electrical generator, which produces electric power.
Before investing in a wind system, you need to consider the amount of wind power available
and how this power can be used to meet your electrical energy needs.
Calculating amount of available wind power. The amount of available (or usable) wind

April 1999

If your wind system is

connected to an
electric utility, you can
feed excess electricity into
the utility lines,

power depends on three basic variables: air density (cold winter air may have a
density factor up to 20 percent greater than warm summer air), the length of the
machines turbine blades, and wind speed at the site. In calculating usable
power, the wind speed is cubed; therefore, even a small change in wind speed
results in a large change in available power. For example, if you thought the
average wind speed at your site was 12.3 miles-per-hour (mph), or 5.5 metersper-second (m/s), but it was actually 11.2 mph or 5 m/s, your power calculations would overestimate available energy production by one-third.
To determine the amount of electric power (in watts) available, use the following
formula:
Available electric power = .6125 x D x A x V3 x E

and then draw on utility

D = air density ratio at elevation x density ratio at temperature (consult the

WRAP report for a formula to calculate Density see page 8).
A = swept area in square meters (blade length2 x 3.14)

power when the

V = wind speed in m/s

E = blade efficiency (obtained from manufacturer or dealer)
(To convert miles-per-hour to meters-per-second, multiply by 0.447.)

wind system cannot meet

your demand.

Applying the formula to a typical Minnesota small wind generation site, with
elevation of 1,000 feet and an average temperature of 40o F. :
D = 1.004
A = blade length of 3.5 meters2 (*) x 3.14, or 38.5 square meters
V = wind speed of 5.49 m/s cubed, or 165.47
E = blade efficiency of .3
Available power = .6125 x 1.004 x 38.5 x 165.47 x .30 = 1,175.2 watts, or 1.18 kilowatts.
(* 1 meter = 3.28 feet; therefore, blade length of 11.5 = 3.5 meters)

Applications. This available power can be used in a number of ways. For

example, you may choose to connect your wind-driven generator with your present electrical system so that you can draw power from either your utility or the
generator. Another option includes making the generator independent of the
utility and using the electricity directly for your home, farm, or business needs.
This may require using a battery system to store surplus electricity. If you use
wind energy primarily for water heating, an extra large storage tank can be
added with an electric heating coil directly connected to the output of a wind
generator. This does not require the specialized circuitry needed to hook up to
the utility grid.
Utility connections. A wind system produces varying amounts of power,
depending on wind speed. If your system is connected to an electric utility, you
can feed excess electricity into the utility lines when you have more power than
you need, and draw on utility power when the wind system cannot meet your
demand. Federal and state laws now require utilities to buy the excess power
generated. The Minnesota Public Utilities Commission, in conjunction with the
utilities and other interested parties, has developed rules that establish buyback
rates. Minnesota state law requires the utility to buy back electricity at average
retail rates if generating capacity is less than 40 kW. Recent Minnesota state law
2

Minnesota Department of Public Service

also offers incentive payments for the sale of electricity (see page 8).
A wind generator can be interconnected with utility power by using
either a synchronous inverter or an induction generator. A synchronous inverter changes wind-generated DC current into AC current
with the same frequency as utility power, while an induction generator
produces synchronized AC current directly. Both the inverter and generator must meet safety and quality standards set by the utility.
The advantages of utility interconnection include having standard utility AC power when you need it, eliminating the need for expensive
electrical storage, and having the potential to sell excess power back to
the utility. One disadvantage may be the cost of the interconnection,
which can vary considerably from utility to utility.
Battery storage. If you do not interconnect your generator with a utility power line, you will need storage batteries to provide electricity
when sufficient power is not available from the wind system. You
should plan to have enough battery storage capacity to meet your electricity needs for three to five days. Lead-acid batteries are presently
the least expensive, most practical means of storing electrical energy.
These may be much larger than car batteries and will have thick lead
plates for deeper discharge and repeated cycling over many years.
Battery storage wind systems are generally the most expensive. In
addition, they are not as efficient because power is lost during battery
storage and through DC to AC conversion. For most cases, these problems limit A 10-kW wind turbine. Photo Bergey
the economic feasibility of battery storage systems. In remote locations, howev- Windpower Co. Inc.
er, where bringing in utility lines would be very costly, battery storage wind systems are an excellent alternative.

Do I have a good site?

Finding the best possible site for your wind machine is critical and should be
done carefully. Follow these basic steps in site selection:
Determine the general wind resource in your area.
Observe wind and terrain characteristics.
Measure wind speed at each site being considered.
Check for legal restrictions.

The wind resource in your area. The Wind Resource Map prepared by the
Department of Public Service and inserted in this brochure shows the states
wind resource by wind power classification. The map was developed using
data from the DPS wind monitoring sites and a computerized mapping process
that takes into account terrain characteristics such as elevation, vegetation, and
surface roughness. (See page 8.)
Site observation. Your own observation can be useful in assessing the wind
energy potential of your site, although it is easy to overestimate the wind energy
potential of a windy site. Take some time to observe the wind; wind speeds of 9
to 12.3 mph (4 to 5.5 m/s) cause constant motion of leaves and small twigs and
make flags or streamers extend.
Examine the topography of your land for obstacles such as trees, buildings, and
Minnesota Department of Public Service

Manufacturer

kW

Rotor
Diameter

kWh est.
Output

List
Cost

Jacobs

10
15
20

23
26
29

22000
25500
42000

$20,000
$23,000
$25,000

World Power
Technologies

0.6
1
3

7
9
14.8

1680
2880
7920

$1,000
$1,600
$3,400

Bergey

10

23

22000

$17,000

hills, which slow the wind from certain directions. If your land has a large open
flat area or a ridge or hilltop with exposure to winds from most directions, its
potential as a wind energy site is increased. Lower areas, ravines, river bottoms, and wooded sites are generally not practical for wind systems.
If there is a nearby airport or weather station, check for any wind speed data it
can provide. If the topography of the weather station is similar to that of your
site, its wind data may approximate yours.
If these preliminary indications are favorable, the next step is to monitor the
wind speed.
Wind speed monitoring. On-site wind speed monitoring is recommended for
any potential site, but particularly if a significant investment is being considered
or if project performance is critical. Wind speeds are measured by an instrument called an anemometer.
An anemometer is a small wind generator with cups or blades that produces an
electrical signal in proportion to the wind velocity. Often a wind vane is mounted with the anemometer to indicate wind direction. Both instruments should be
mounted on a pole or tower that is as close as possible to the height at which
your wind machine will be mounted. If your anemometer is mounted too low,
it will underestimate the actual wind resource available. It is generally recommended that the hub height for your machine be at least 100 feet (30 meters).
Hourly average wind speeds with hourly wind speed standard deviations
should be recorded for a minimum of three months, but ideally for a full year to
generate data on all seasons. Wind speed data can then be used with performance data for various wind machines to determine the expected output for
each machine at your site.
Anemometers may possibly be leased from a local wind machine dealer, or you
may choose to purchase one. A simple wind monitoring device that records
hourly wind speeds and wind direction may cost as much as $700.
Site legal restrictions. If your site is in a remote or agricultural area, you may
not need to worry about legal restrictions. You should, however, check with
your city or county for zoning regulations and building and electrical codes.
Restrictions may be placed on the height and distance of your wind generator
4

Minnesota Department of Public Service

from property lines and roads. Sometimes visual

impact and noise can become issues.
If you plan to interconnect with your electric utility,
you should determine its policies concerning interconnection. Federal and state laws require utilities
to interconnect with small power producers, but
policies and equipment required vary from utility
to utility.

What does a wind system cost and how

much will it save?
The cost of a wind energy system includes the initial purchase price plus maintenance costs. The
chart on page 4 summarizes these costs for several
machines available in our region.
Maintenance costs. Maintaining a wind machine typically involves a once- or
twice-a-year inspection, lubrication, and change of oil in the gear box, all of
which may be covered under a service agreement contract with the dealer.
Your long-term project plan should also allow for parts replacement and
repair of such items as the generator, controls, blades, or brake system. Total
annual maintenance costs are usually estimated as 2 to 2.5 percent of the initial machine cost.

Multi-bladed windmills were once wide ly used to pump water on American

farms. Farmers largely stopped using
them following the rural electrification
program of the 1930s. Photo U.S.
Department of Agriculture.

Calculating savings. To estimate the cost effectiveness of your wind system,

you need the following information:
The cost of the equipment, including installation; be sure to include either
the real cost, or a close estimate, of each required component/service.
The expected annual energy output of the machine, in kilowatt-hours,
based on the manufacturers estimates for the wind speed data at the intended site.
Simple payback. The worksheet on page 6 will help you calculate how long
it will take before the cost of the machine will be paid for by the energy savings. Remember, however, that simple payback does not take into account
any loan interest charges or operating and maintenance expenses. The worksheet should be viewed as a rough estimate; if the results are favorable, more
precise calculations will be needed (see page 8).

How do I choose the right system?

Selecting a system that is the right size is extremely important. Your first step
is to find out how much electricity you consume. Generally, a 10 kW machine
provides enough power for the average home, and a 20kW machine is adequate for the average farm. Some people buy larger machines, which actually
cost less per kilowatt than the smaller models, and then sell the excess electricity to their utility. The key to making the best choice is to know your
needs, including how you plan to use the electricity. Evaluating your energy
use and implementing conservation measures also would be a wise step
before investing in a wind turbine.
Wind machines also differ in axis design. Horizontal axis machines are the
most common and are classified as either upwind or downwind. In the
Minnesota Department of Public Service

upwind models, the wind passes through the blades before going through the
tower. These models are large machines with motorized yaw controls that hold
the rotor into the wind. In a downwind machine, the wind passes through the
tower before striking the blades.
Vertical axis machines may perform better in very high wind areas, but are also
more expensive and are not used in Minnesota.
As with any major purchase, before you buy a wind machine you should shop
around for the best balance of value and quality. To make sure that you receive
all the pertinent information from each dealer, use the following information as
a guide:
Rotor diameter.
Average annual energy output (in kilowatt-hours) at various average wind
speeds.
Rated power output or generator rating (expressed in kilowatts).
Rated wind speed wind speed at which the machine reaches the rated
power output.
Cut-in speed wind speed at which the machine starts to produce power.
Survival wind speed the maximum wind speed the machine is designed to
withstand.

Wind System Cost Worksheet

(for calculating simple payback)

Capital costs (fill in only blanks that apply)

Wind generator
Tower and foundation
Inverter (if needed)
Batteries (if stand alone)
Installation costs
Shipping costs
Other
Total Capital Costs

(1)______________
(2) _____________
(3) _____________
(4) _____________
(5) _____________
(6) _____________
(7) _____________
(8) $ ____________

(add 1-7)

Projected annual
energy output (kWh)

(9) _____________

Annual energy cost saving (10)____________

(electric retail rate x line 9)

Simple payback
(line 8 line 10)
6

(11) ____________

Example, based on a typical 20kW machine

in a 6 m/s (13.4 mph) wind regime.
Capital costs
Wind generator
Tower (80 foot)
Inverter
Batteries
Installation and
foundation costs
Shipping costs
Other hardware

(1) $16,500
(2) 5,144
(3) 3,900
(4)
n/a

Total (add lines 1-7)

(8) $30,044

(5)
(6)
(7)

3,000
700
800

Projected annual energy

output
(9) 42,000 kWh
Annual energy cost savings (10) $3,402
(based on electric retail rate
of 8.1 cents per kWh)

Simple payback

(11) 8.8 years

(30,044 3,402)
Minnesota Department of Public Service

 Mechanical and electrical systems, how they work and whether they are automatic or manual.
Manufacturer or dealer warranties and/or maintenance contracts.
Electric equipment for utility connection or electrical storage, if needed.

Step-by-Step Procedure for Considering Purchase of a Small Wind System

Make sure there are no legal and environmental restrictions to installing a small wind energy system.
Determine your year-round electrical requirements.
Evaluate your site and its wind energy potential.
Select a likely machine site; obtain anemometer and monitor wind speeds for three to twelve months.
Survey the various small wind energy systems on the market and obtain necessary information from the manufacturer of each machine considered. Make a preliminary selection.
Consult your local utility about interconnection costs and requirements if your machine will be interconnected
with the power grid.
Evaluate the initial cost, as well as the cost per kilowatt-hour of electricity, for the machine you are thinking of
buying. Use the worksheet on page 6 to compare these costs with your utility rates and roughly calculate your
investment payback.
If your calculations are favorable, it is advisable to pursue more sophisticated analysis of your wind energy
potential and potential profitability before purchasing a machine. Remember to consider tax breaks, and if you
intend to sell some or all of the electricity generated, the utility buyback rate as well as the incentive payments
available from the state will affect the profitability of your investment (see page 8).

Small Wind Energy Equipment Dealers and Manufacturers

There may be additional dealers and manufacturers not included in this list. Inclusion on the list does not constitute endorsement by the Minnesota Department of Public Service.
Atlantic Orient Corp.
PO Box 1097
Norwich, VT 05055
802-649-5446

Lake Michigan Wind & Sun

1015 County Road U
Sturgeon Bay, WI 54235
920-743-0456

Southwest Windpower
PO Box 2190
Flagstaff, AZ 86003-2190
520-779-9463

Bergey Windpower Company

2001 Priestley Ave.
Norman, OK 73069
405-364-4212

Natural Energy Systems

1802 Richard Ct.
White Bear Lake, MN 55110
651-426-9577

Voyager Energy
6063 Highway 11
International Falls, MN 56649
218-283-9477

Conservation Technologies
2302 W. Superior St.
Duluth, MN 55806
218-722-9003

Northern Power Systems

One North Wind Road
PO Box 999
Waitsfield, VT 05673
802-496-2955

Wind Turbine Industries

16801 Industrial Circle SE
Prior Lake, MN 55372
612-447-6064

Preferred Energy Resources

3031 County Road 7
Grand Marais, MN 55604
218-387-2160

WindLite Corp.
897 Independence Ave.
Suite 2E
Mountain View, CA 94043
650-964-1596

Rural Wind Electric

Route 1, Box 20-A
Breckenridge, MN 56520
218-643-1688

World Power Technologies

19 North Lake Ave.
Duluth, MN 55802
218-722-1492

Enercheck Systems
475 E. 4th St., PO Box 156
Cottonwood, MN 56229
507-423-5347
Energy Management Services
Jacobs Wind Turbines
Route 1, Box 102
Elbow Lake, MN 56531
Phone: 218-685-4312
Minnesota Department of Public Service

Financial and Other Assistance for Small Wind Energy Developers

The State of Minnesota provides a number of financial

and information resources to aid developers of small
wind energy systems. They include:

Tax breaks
Minnesota exempts wind generation equipment from
the state sales tax. The state also exempts wind energy
systems of less than 2 MW from any property tax.
Other laws encouraging wind development include an
easement law that prohibits a building or other structure from being erected near the wind turbine where it
could interfere with the wind resource.

Payments for electricity and other financial

incentives
Federal and state laws require utilities to buy back
excess power generated by small wind energy systems.
Check with your utility for the buyback rates for electricity you produce. Minnesota law requires utilities to
pay the average retail rate in their area for excess electricity produced by small wind energy systems.
Minnesota law also provides for payments of 1-1/2
cents per kilowatt-hour to those who erect small windpowered generators (nameplate capacity of 2 MW or
less) and sell the power produced. The payments are

for the amount of electricity sold, and not on any electricity used by the owner. For more information on eligibility requirements, call the Minnesota Department of
Public Service Energy Information Center at 651-2965175 in the Twin Cities or 800-657-3710 from elsewhere
in Minnesota, and ask for the packet on Commercial
Wind Energy Development.
Loans for the purchase of wind energy systems are
available through the Minnesota Department of
Agriculture. For more information, call the Sustainable
Agricultural Loan Program at 651-282-2261, and the
Rural Finance Authority at 651-297-3557.

Evaluating wind energy potential

The Minnesota Department of Public Service produces
maps of Minnesotas wind resource that are periodically updated and are available to the public for a nominal
cost. The maps and compilation of data from the monitoring sites are contained in the Wind Resource
Assessment Program (WRAP) reports issued periodically. For copies of the WRAP report, call Rory Artig at
651-297-2326. DPS also prepares other publications
covering wind energy topics, including utility green
power rates. For copies of these publications, call the
DPS Energy Information Center at the numbers above.

For more information on wind energy, contact:

Minnesota Department of Public Service (DPS)
200 Metro Square Building
121 - 7th Place East
St. Paul, MN 55101-2145
http://www.dpsv.state.mn.us

DPS Energy Information Center

Twin Cities 651-296-5175
TTY: 651-297-3067
MN Toll Free 800-657-3710

Minnesota Department of Public Service