Small Wind 101:

An Overview of Small-Scale Wind Electric Systems

Affordable, Clean Energy for Homes, Farms and Businesses (www.awea.org)

WHAT ARE SMALL WIND TURBINES Small Wind Turbines are less than 100kw.

Our 3000 watt Whisper was installed in 1997 and is producing enough power for a small home (400 KWH/Month)

Big Wind Projects (over 100kw) are in a different business class, not covered in this presentation

Declining Northern Polar Ice Cap

1979 2005

Source: Everybody’s Weather, 2005. http://www.everybodysweather.com/Static_Media/Polar_Ice_Cap_Melter/index.htm

Projected Climate Changes in Minnesota by 2100

• • • •

Temperature

– Winter + 6-10 ° F – Summer +7-16 ° F – Growing season 3-6 weeks longer

Precipitation

– Winter +15-40% – Summer –15% – Drier soils, more droughts

More extreme events

storms, floods – – Could be 50-100% more frequent than now

Ice cover decline

will continue

Why Wind?

• Energy independence • Save and Make Money • Reduce vulnerability

to volatile utility prices

• Reduce air pollution from

fossil electricity sources

How Small Direct Drive Wind Turbines Work

Pictured above is a Skystream 3.7 direct drive wind turbine Safety Switch Cumulative Production Meter AC Load Center Power Processing Unit (Inverter)

HOW THE JACOBS SYSTEM WORKS

WHY JACOBS?

• Proven over 75 years: Oldest Name in USA • Low Cost ($3 / watt) – High Value • USDA comfortable with Jacobs (9006 grant) • Equipment holds value well (50 year life) • Ease of operation and interconnection • Low maintenance - $500 per year average • UL Approved, Documented by Engineers • Power Company acceptance • Locally made in Minnesota • Proven excellent design and components

Here are the steps for you to get a Jacobs Wind Turbine STEP 1. Site Plan

a) Hire an expert to visit your site, provide written estimates of resources, itemize costs, options, income and benefits (costs start at $500).

b) Have a detailed site plan drawn up, showing set-backs, buildings, directions and turbine location.

c) Make a decision about which tower height. Remember, a taller tower reaches greater power.

Mock Up Photo for all Permits

Photo before editing

After Editing

Here are the steps for you to get a Wind Turbine

STEP 2. Permit

a) Contact your local power company about entering a co-generation agreement. They will send you the forms.

b) Hire a consultant to help you complete all permits and save you time with paperwork.

c) You may be eligible for some grant money or low interest loans. Your consultant can help you with this, too.

Here are the steps for you to get a Wind Turbine

STEP 3. Construction

a) The foundation is critical, so hire an experienced contractor.

b) Follow manufacturers specifications and process for tower and turbine installation.

c) Hire a licensed electrician to connect your turbine to your local power company.

Annual Maintenance Cost = $500

STEP 4. Operations & Maintenance

a) Check output, bolts, nuts and power connections.

b) Climb tower, change oil and grease fittings.

c) Every 10 years, change the four main bearings.

Enjoy watching the wind make money for you! Also, pat yourself on the back for reducing pollution!

INCOME - BENEFITS

• MACRS Depreciation, avg = $25,000 • USDA 9006 Grant = $16,000 • Net Metering, 20 years = $50,000 • Antenna Lease, 20 years = $20,000 • Education Sponsors, 5 yrs = $5,000 ?

• Green Credits (future income = ? • Production Tax Credit (future) = ?

Income Streams, Tax Benefits and other Funding Possible for a Small Wind Turbine for Farm or Small Business Use: 1. Net Metering: Your Power Company must pay you the average retail rate (ARR) for electricity that you sell back to them. In an average wind speed of 13 mph (Class 3 wind), the Jacobs 31-20 will produce about 30,000 kWh per year. With a 10-cent ARR per kWh, you would receive $3000 per year income.

2.

Income Tax Deduction: Called MACRS Depreciation (Maximum Accelerated Cost Reduction Schedule): A Wind Turbine installation can be rapidly depreciated (deducted from income taxes) within the first 5 years under the Federal MACRS program (Minnesota’s version is 6 years). The depreciation can also be spread out over a longer period of time if desired (details see tax advisor).

3. Tower Antenna Leasing: With the growth of wireless phones, Internet and GPS based technologies, antenna are needed for local customer feeds in certain areas. Once you own a 120’ tower, you can negotiate an arrangement with several suppliers.

Income Streams, Tax Benefits and other Funding Possible for a Small Wind Turbine for Farm or Small Business Use: 4. Tax Exemptions: Small Wind Turbines (and Solar) are exempt from MN Sales Tax. They are also exempt from Property Taxes (a $60,000 system increases the value of your property but will cause no tax increase). See www.dsireusa.org

. 5. Education, Training, Sponsors: With the current strong interest in Wind Power, more people want to learn about opportunities. Vo-Tech Schools, Colleges, High Schools and other Learning Centers may wish to adopt your turbine (class field trips, conduct training programs, conduct research (monitor hook up your turbine to wind and weather sensors then to their school website). This creates opportunities for businesses to sponsor your project. 6. Grants are available from a few sources including your local power company, state or regional foundations, state government or Federal government. A popular grant for a rural small business is the USDA (9006 Farm Bill Clean Energy, see www.farmenergy.org

) or contact us for more information.

JACOBS 31-20 TURBINES ON A 120’ TOWER INSTALL IN ABOUT THREE SOLID WEEKS, INCLUDING EXCAVATION, STEEL, FORMS, CONCRETE, TOWER ASSEMBLY, WIRING, ELECTRICAL AND TOWER TIP UP. CONCRETE MUST CURE FOR 30 DAYS PRIOR TO INSTALLATION.

TOWER IS 120’, BASE IS ABOUT 14’ ON A SIDE, 90’ ft. sq.

Connecting to the Grid

•

PURPA requires utilities to connect with and purchase power from small wind systems

• •

Reduce consumption of utility-supplied electricity Utility acts as a big “battery bank”

•

Contact individual utility before connecting to its lines

Interconnection Requirements Safety Issues

• Must meet electrical

codes

• Must stop supplying

power to grid during power outages

Power Quality Issues

• Must synchronize with grid • Must match utility power’s voltage, frequency

and quality

LARRY AND CAROL GLASSMAN WIND TURBINE INSTALLED IN OCTOBER 2004.

TAX BENEFITS ARE THE GLASSMANS BIGGEST PAYBACK. THEY SAVED $7500 IN THE FIRST YEAR.

MORE THAN 100 JACOBS TURBINES ARE RUNNING IN MN

Tower Height Matters

   

Wind speed increases with height Small increases in wind speed result in large increases in power Tall towers often needed for clearance above obstacles

(turbulence)

May require a variance or a special use permit

Height or Distance Needed

Potential Obstacles

• •

Legal issues

City, town, or county ordinances restricting height or requiring minimum setbacks Building codes and covenants

• •

Environmental Issues

Neighbors’ concerns

(visual impact, noise)

Potential physical obstacles

(growing trees, planned construction)

Noise & Visual Impact

Improved designs have made machines much quieter

• Comparable to central

AC unit

• Noise levels fall

sharply with distance

1 acre is a good rule-of-thumb minimum property size for a small wind installation capable of powering the whole house

Objections are less likely in a rural setting

•

Spinning blades perceived as useful

• Talk to neighbors

before seeking permit

HELP IS NEEDED FOR SMALL WIND TURBINE BUSINESS Future Incentive: Federal Production Tax Credit of 1.9 cents per kwh. This is another tax deduction to learn about (currently available only for big wind projects, not yet for small wind), based on your meter reading each year. If you produce 30,000 kWhs, you would receive $570.00 per year credit on your income tax return. See www.dsireusa.org

. Please help get this tax credit or some other tax credit for small wind. Future Incentive: Green Credits: Carbon Tax is required to be paid by big businesses for air pollution they create. Your wind turbine produces power without pollution, so big businesses can eventually purchase your carbon reduction “credits” to help mitigate their pollution. Current pricing is from 2 to 3 cents per kWh, but no firm markets or laws yet govern this incentive. Please help make this happen.

For More Information on Zoning Issues...

•

Legal and Safety Issues – U.S. DOE Small Wind System Installation Reference Brief

www.eren.doe.gov/consumerinfo/refbriefs/ja2.html

•

AWEA Advice from an Expert

www.awea.org/faq/sagrillo

- Trials and Tribulations - Keeping Hearings Under Control - Zoning Obstacles - Perceptions/Local Concerns

Insurance Requirements

Add to Homeowners or Business Policy: Cost range: $4 to $7 per 000

Policy Responses Eight states prohibit utilities from imposing insurance requirements for qualified systems.

Five other states limit required coverage amounts to levels consistent with commercial and residential insurance policies. Minnesota limit is $300,000

In >20 years, there has never been a small wind system related liability claim

DEPRECIATION

• MACRS: Maximum Accelerated Cost Reduction Schedule: Depreciation- see your tax advisor – A Wind Turbine installation can be tax depreciated (deducted from income taxes) within the first 6 years under the MACRS program (MN version is 6 years).

– The depreciation can also be spread out over a longer period of time, if desired (see your tax advisor for details).

POWER PRODUCTION

•

Net Metering:

Local Power Utilities are required to pay small generators (>40kw) for their excess electricity based on the power companies average retail cooperative energy rates (ARCER).

• “

Green Tags”

or renewable energy meter credits can be sold to brokers who are buying Carbon Tax exemptions from large corporations.

•

Federal Production Credit:

A tax credit of 1.9 cents/kwh is based upon meter readings from wind turbine systems (extended until 12-2008).

OTHER EXEMPTIONS

• Sales Tax: All renewable energy technologies (wind, solar, geothermal, etc.) are exempt from sales tax.

• Property Tax: Increase in value of real estate is exempt from tax in Minnesota.

For More Information on Interconnection...

“Connecting a Small-Scale Renewable Energy System to an Electric Transmission System”

800-DOE-EREC U.S. Department of Energy Reference Brief (bibliography) www.eren.doe.gov/consumerinfo/refbriefs/ja7.html

“Connecting to the Grid”

Interstate Renewable Energy Council www.irecusa.org

For More Information on Small Wind Economics...

•

Minnesota Commerce Department: Mike Taylor 651 296 6830 www.commerce.state.mn.us

•

Wind Resource Atlas of the United States

http://rredc.nrel.gov/wind/pubs/atlas/ •

Database of State Incentives for Renewable Energy

www.dsireusa.org

OUR CUSTOMERS

• Larry/Carol Glassman • Morrison County Fair • Bob/Sue Meyerson • John/Patty Persell • Hunt Utilities Group • Melody Lane Farm • Boy’s & Berries Farm • Prairie Woods ELC • Tom Clemen Farm • WATER Foundation • White Earth Band • White Bear Racquet and Swim Club • Walker Animal Hospital • Ed Gehrke: One Heart/One Mind

Hunt Utility Group Jacobs Turbine near Pine River, MN

Atwater, MN Jacobs Wind Turbine Completed on 1-11-06

MISSION

We believe that by designing and building long-lasting, efficient buildings that generate their own energy, conserve natural resources and reduce pollution that we are creating a good return on investment that is building a new, more sustainable economy

Our motto is “Conservation Pays!”

Visit the Eco-Domes near Brainerd, MN

WERC is a division of the Eco Domes, LLC © 2005

Our WERC includes:

•

Designing environmentally responsible buildings

•

Consulting/training on energy/water/building technologies

•

Wind Turbine sales, construction, management, service

•

Energy Audits, Energy Load Calculations, Building HVAC Requirements (Energy 10, RET Screen, Energy +)

•

Storm Water Landscaping, Septic Systems, Water Audits, Water Technology Sales

•

Construction of Environmentally Responsible Buildings, Solar Electric, Solar Heating, Geothermal, Bio-Fuels, Grey Water Systems, Composting Toilets, Pond Gardening and Native – Permaculture landscaping

HERE’S HOW WE WERC ON SUSTAINABLE BUSINESS DEVELOPMENT AND PROJECTS

•

Environmental Consulting on overall property development

•

Analyze/plan property for geothermal, wind or solar potentials

•

Design buildings for maximum efficiency and natural beauty

•

Install sustainable technologies with trained, certified installers

•

Marketing and sales of environmentally responsible properties

•

Train and Certify Installers on several technologies

•

Help create new jobs and provide significant economic benefits for the communities and participating stakeholders

•

Help find and solicit innovative grant funding from state and federal government agencies, foundations and stakeholder organizations

Call 218 764 2321. Browse www.hopshop.net. Visit the Eco-Domes near Brainerd, MN

WERC is a division of the Eco Domes, LLC © 2005

The Eco-Dome Conservation Campus is located near South Long Lake, SE of Brainerd, MN (5 miles East on Hwy 18 then 5 miles South on CR 23).

Open for Tours M – F, 9:00 am to 5:00 pm.

Awards

  

Minnesota Office of Environmental Assistance Minnesota Governors Green Building Award Minnesota Waste Wise

WERC is a Division of The Eco-Domes, LLC.

Visit our facilities at 9121 CR 23, Brainerd, MN. 218 764 2321