A Home Owner Installs a Wind Turbine with a Rotor

question 12

Essay

A home owner installs a wind turbine with a rotor diameter of 2 m to supplement electricity from the public utility. The cost of the turbine, the associated electronics, and energy storage system (batteries) is $10,000. If the turbine has an efficiency of 35% and the energy is utilized and or stored at an efficiency of nearly 100%, what is the payback period for the investment? Assume that maintenance costs are minimal, the capital recovery factor is unity, electricity from the public utility costs $0.10 per kWh, and the wind velocity is constant at 12 m/s.

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Definitions:

Patented Item

An item or invention that is legally protected by a patent, granting its inventor exclusive rights to use, make, and sell it for a certain period.

Plant Assets

Long-term tangible assets used in the production of goods or services, typically including buildings, machinery, and equipment.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the normal operating cycle, whichever is longer.

Intangible

Assets that lack physical substance but are identifiable and provide economic benefits, such as patents and trademarks.