As the global population continues to grow and a higher percentage of the population enters the modern and industrialized world, the demand for energy will continue to rise. The problem with this is, of course, that currently our energy needs are being met through the processing and burning of coal, oil and other fossil fuels. These fossil fuels are present in limited quantities, and eventually will run out. At that time we will have to have converted our existing infrastructure into one that uses renewable energy sources to create power. This can be done on a wide scale level, or small scale from home to home. If you would like to become part of the green energy revolution, but would like to have some monetary figures to determine how long it will take for you to recoup your initial investment, then the following article is for you.
To begin your calculation of payback period, you will first need to know how much money you are going to spend on the purchase and installation of your wind turbines. Look online and contact some local dealers to find out how much it will cost to buy and install a wind turbine at your home. You should take into account a variety of factors here, such as size, energy production and cost. You can run this analysis on several different wind turbines in order to determine if one is a better deal than the other. Once you have information on the cost and the energy production of a wind turbine, you can move on to step two.
Normally there are no government incentive programs for installation of wind turbines on your property, but it is still worthwhile to check with a local dealer just in case. If there are rebates or tax incentives, then you would subtract whatever money you get back from your initial cost expenditures.
The starting cost minus any incentives you might get is your cost for the first year. You can now begin determining how much money you will save in the next year. From the information you garnered in step one, you should know how much energy your wind turbine will produce. To get a real world estimate, take 70% of that number and then take a look at your electric bill. Multiply your expected energy output by the cost per kWh from your bill. This will show you how much you can expect to save. Multiply this number by 12 to get an estimate of how much you will save per year.
Then take this number as an estimate of how much money you will save every year and divide your initial cost by this amount saved per year. The resulting figure will be an estimate of how many years it will take for you to save your initial investment. For most people, their initial investment is recouped in between five and seven years. Hopefully you now see how you can save money in the long run by investing in green energy.
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