The Bottom Line

The Bottom Line

With a Wind for Industry® project, our customers see immediate as well as long-term savings. You pay nothing upfront and nothing to operate the project; you only pay for the power we deliver.

Immediate and Long-Term Savings

Because of One Energy’s Renewable Energy Agreement (REA), Wind for Industry® customers receive a rate that is almost always lower than your current rate of power from your utility provider. That translates to immediate savings. 
 
Since there is no initial investment from the customer, discussing Return on Investment (ROI) and Internal Rate of Return (IRR) does not make sense for our projects. Instead, we have found Net Present Value (NPV) is the most appropriate tool to use. In the customer savings calculator we provide (which we encourage our customers to audit), we calculate the NPV of the project based on the discount rate the customer desires (typically 7-9%) to understand the NPV of the future savings. It’s also important to address risk and model both a 0% inflation in electricity rates and then a range of inflation rates going from 1-3%. In this manner, we can help you determine the NPV of a Wind for Industry® project. When there is no initial investment, it makes for quite an attractive return. 

Going Green

A Wind for Industry® project not only benefits our customers financially, but it can also significantly reduce a facility’s carbon footprint and help market a company’s commitment to environmental sustainability. With one of our wind turbines, you are essentially inserting a 405-foot billboard in your backyard that tells your community you are committing to them, and you are committing to corporate responsibility. Read more about the environmental impacts of wind energy and find out how you can calculate the carbon dioxide emissions your Wind for Industry® project can offset. Then watch as we answer common questions from Sustainability Managers when their plant is considering wind energy
wind turbine

CONSIDERING WIND?

One Energy employees answer the questions we frequently encounter from current and potential customers in this Considering Wind video series.

Watch and learn

Gross Capacity Factor

Much of the revenue that comes from a wind turbine has to do with the relationship between the area where the turbine is sited and the generation capabilities of the turbine itself, or the capacity factor. Gross capacity factor refers to the wind resource measurement that determines the quantity of kilowatt hours (kWh) produced by a wind turbine. A wind turbine in an area with proper wind speeds will have more attractive power production and will result in better revenue. Therefore, an increase in capacity factor increases the cost effectiveness of a project. The map below, taken from the National Renewable Energy Lab’s website, shows the average wind speeds in the United States at 80 meters. This information can be used to determine the revenue a turbine will produce in a given area. Learn more about the engineering behind wind energy on our Considering Wind video page.

Wind Speed m/s

Capacity Factor Range

 

>10.5

50%

 

10.0

50%

 

9.5

50%

 

9.0

50%

 

8.5

50%

 

8.0

45%-50%

 

7.5

40%-45%

 

7.0

35%-40%

 

6.5

30%-35%

 

6.0

25%-30%

 

5.5

15%-20%

 

5.0

10%-15%

 

4.5

5%-10%

 

<4.0

<5%

Billing

NET METERING

Net metering is a billing mechanism that credits Distributed Generation (DG) customers for electricity they supply to the grid. For net metering to work, the meter must be capable of flowing both forward and backward. Over a billing period, if the customer consumes more than they generate, they will owe the utility provider for the difference. Similarly, if the customer generates more than they consume over the period, they may receive a credit(amount varies by state). Thirty-eight states have net-metering policies and some utilities have voluntarily adopted them. However, the size of the renewable facilities that qualify varies by state.

PURPA

For states and utilities that do not offer net metering, small renewable generation facilities are generally able to sell excess energy back to the utility at avoided costs under a federal law known as the Public Utilities Regulatory Policy Act of 1978 (PURPA). Avoided costs are generally defined as the price the utility would otherwise pay for electricity and varies widely across the country.

THE RELATIONSHIP BETWEEN NET METERING AND PURPA

In sum, with net metering, the difference in consumption and generation is netted over a billing period; with PURPA, it is netted instantaneously. This concept matters less to customers with consistently high electricity consumption because they are able to use all the output from the turbines in real time, but for those who do not, net metering allows the customer to more effectively and economically offset their consumption with the generation from the turbine. Learn more about billing from our Considering Wind video for the Energy Manager.

Credits

RENEWABLE ENERGY CREDITS

A Renewable Energy Credit(REC) is an intangible certificate that signifies one megawatt hour of electricity produced from a renewable resource. A REC can be bought and sold in the market and signifies the holder is responsible for creating a particular amount of renewable energy. States, regions, and private companies set standards for what qualifies as a REC and RECs must be certified to be sold in the market. Therefore, companies can own RECs without actually running on wind power. With a Wind for Industry® project, our customers not only benefit economically from the REC market, but they are legally“wind powered.”