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How Much is a Wind Turbine Likely to Make me and Over What Period? UK
How Much Profit Will I Make From a Wind Turbine?
As with other renewable technologies, wind turbines are eligible for the Smart Export Guarantee (SEG) which means that you can sell your excess electricity production to the grid. Whether you make any profit on your wind turbine energy production will depend on a wide range of factors, including:
- The size and potential output of your wind turbine.
- Its height – the general rule of thumb, up to certain limits, is that you should get a 1% increase in power generation for every meter.
- The quality of the turbine components, initial installation costs and ongoing maintenance needs.
- The wind speed that your site generally gets.
- Distance from obstructions that could affect the wind flow, such as houses, trees or hills.
- Height above sea level may also be another factor that you need to consider.
- The Feed in Tariff the turbine qualifies for.
- Your own energy usage and how much excess you will be able to export to the grid.
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Domestic Wind Turbines: A domestic turbine is a smaller system and hence has less output. In most cases it will enable you to reduce the amount you pay on energy bills but may not give you enough to profit from the Smart Export Guarantee, especially if you are opting for one that is mounted on your building. Ofgem estimates that the average household uses about 3,330 kWh of energy each year and a well-placed wind 2.5 kW wind turbine will certainly go some distance towards covering your electrical demands.
A domestic wind turbine is likely to cost around £7,000 to install and, if you have the right situation (that is the right wind speed and location), you could see a production of 4,400 kWh over the year.
What can I export on average from the Smart Export Guarantee?
For small wind turbines, the SEG rates generally range between 1p to 27p per kWh, depending on the supplier and specific tariff. For instance, Octopus Energy offers the highest rate of 27p per kWh for customers with a GivEnergy solar battery, while other suppliers like Scottish Power offer 12p per kWh, which is accessible to both customers and non-customers. (Ofgem)
On average, a small domestic wind turbine that produces about 2,600 kWh annually could expect to earn:
- At the lowest rate of 1p per kWh: £26 per year
- At a moderate rate of 12p per kWh: £312 per year
- At the highest rate of 27p per kWh: £702 per year
One of the main advantages of wind power over solar is that it produces power both day and night and is more profitable over the winter months when winds are traditionally higher. This is particularly valuable if you have installed a larger turbine system for commercial purposes.
UK energy suppliers offering Smart Export Guarantee (SEG) rates for wind turbines:
| Energy Supplier | SEG Rate (p/kWh) | Customer Requirement | Notes |
|---|---|---|---|
| Octopus Energy | 27 | Octopus customers | With GivEnergy solar battery |
| Octopus Energy | 23.5 | Octopus customers | With solar battery |
| OVO Energy | 20 | OVO customers | With battery |
| Good Energy | 20 | Good Energy customers | With smart meter |
| E.On | 16.5 | E.On customers | Next Export Exclusive |
| Octopus Energy | 15 | Octopus customers | Outgoing Fixed |
| OVO Energy | 15 | OVO customers | OVO SEG Tariff |
| Scottish Power | 15 | Scottish Power customers | SmartGen+ |
| British Gas | 15 | British Gas customers | Export and Earn Plus |
| Scottish Power | 12 | none | SmartGen |
| So Energy | 7.5 | none | So Export Flex |
| Rebel Energy | 6 | none | SEG Tariff |
| EDF | 5.6 | EDF customers | Export Variable Value |
| Utility Warehouse | 5.6 | Utility Warehouse customers | UW Smart Export Guarantee - Bundle |
| Pozitive Energy | 5 | none | SEG Tariff |
| Octopus Energy | 4.1 | none | Outgoing Go |
| OVO Energy | 4 | none | OVO SEG Tariff |
| Utilita | 3 | none | Smart Export Guarantee |
| EDF | 3 | none | Export Variable |
| E.On | 3 | none | Next Export |
| Utility Warehouse | 2 | none | UW Smart Export Guarantee - Standard |
* This table is accurate to the best of our knowledge on 21/06/2024. The figures will change often so please check with your energy provider for up to date information.
Commercial Wind Turbines
The cost for a commercial wind turbine in the UK ranges from £1.3 million to £2 million per MW installed, not including acquisition of the land. These costs include installation, connection to the UK grid, and often any required maintenance over the lifespan of the system.
Offshore wind turbines are, understandably more expensive per MW installed. The initial outlay can reach as much as £5 million per MW installed!
The Feed-in tariff (closed)
The Feed-in Tariff scheme closed to new applications on 31 March 2019. The information below is for reference only.
Below you can see a list for various wind turbines with Feed in Tariffs and profits, assuming the conditions are ideal.
| System size | Indicative system cost (incl. VAT @ 5%) | Approx. yearly system output* | Estimated first year FiT income bill savings** | Average break-even point | Income over 20 years*** |
|---|---|---|---|---|---|
| 1.5kW | £7,000 | 2,600kWh | £479.83 | 14 years, 6 months | £9,596.60 |
| 2.5kW | £12,500 | 4,400kWh | £677.02 | 18 years, 5 months | £13,540.40 |
| 5kW | £23,500 | 8,900kWh | £1,304.99 | 18 years, 0 months | £26,099.80 |
| 10kW | £45,000 | 21,500kWh | £3,000.32 | 14 years, 11 months | £60,006.40 |
| 15kW | £70,000 | 36,000kWh | £4,618.80 | 15 years, 1 month | £92,376.76 |
*We have assumed the average UK wind speed of 5.6m/s for the purposes of these estimates. Actual system output is predicated upon the range of factors outlined above. Higher output turbines also tend to be mounted at greater heights, where wind speeds are higher.
** Assuming a 50% export/50% usage rate for systems up to 5k, 20% export rate for a 10kW system, and 12.5% for a 15kW system.
*** Figures shown exclude inflation and have been worked out to give the minimum expected yield so as to not provide misleading figures. An onsite survey over a period of time would more accurately provide an average wind speed measurement that would be closer to your actual expected ROI figures.
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