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Economics of household wind turbine grid-tied systems for five wind resource levels and alternative grid pricing rates

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  • Ghaith, Ahmad F.
  • Epplin, Francis M.
  • Frazier, R. Scott

Abstract

Households in the USA state of Oklahoma serviced by investor owned electric utilities that have smart meters may select to be charged based on either a traditional meter rate schedule, a smart meter schedule, or they may install a household grid-tied wind turbine and be subject to a different rate schedule. The objective of the research was to determine the economic consequences of installing microgeneration grid-tied wind turbine systems (6 kW; 10 kW) given alternative pricing structures for households at five unique locations with different wind resources. Twenty years of hourly wind speed data, and hourly electricity use data for representative households, were obtained for each location. The annual household electricity cost among the five locations ranged from $894 to $1199 for the smart meter rates and $870–$1191 for the traditional meter rates. The estimated annual cost of $5389 for the least costly household grid-tied 6 kW wind turbine system, is five times greater than the annual cost of purchasing from the grid. If external consequences of electricity generation and distribution are ignored, given current and proposed rate structures and prices, household wind turbine electricity generation systems are not economically competitive in the region.

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  • Ghaith, Ahmad F. & Epplin, Francis M. & Frazier, R. Scott, 2017. "Economics of household wind turbine grid-tied systems for five wind resource levels and alternative grid pricing rates," Renewable Energy, Elsevier, vol. 109(C), pages 155-167.
    • Handle: RePEc:eee:renene:v:109:y:2017:i:c:p:155-167
    DOI: 10.1016/j.renene.2017.03.033
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    2. Rieck, Jenny & Taube, Lina & Behrendt, Frank, 2020. "Feasibility analysis of a heat pump powered by wind turbines and PV- Applications for detached houses in Germany," Renewable Energy, Elsevier, vol. 162(C), pages 1104-1112.
    3. Mahelet G. Fikru & Gregory Gelles & Ana-Maria Ichim & Joseph D. Smith, 2019. "Notes on the Economics of Residential Hybrid Energy System," Energies, MDPI, vol. 12(14), pages 1-18, July.
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    5. Fikru, Mahelet G. & Gelles, Gregory & Ichim, Ana-Maria & Kimball, Jonathan W. & Smith, Joseph D. & Zawodniok, Maciej Jan, 2018. "An economic model for residential energy consumption, generation, storage and reliance on cleaner energy," Renewable Energy, Elsevier, vol. 119(C), pages 429-438.
    6. Luis Ramirez Camargo & Felix Nitsch & Katharina Gruber & Javier Valdes & Jane Wuth & Wolfgang Dorner, 2019. "Potential Analysis of Hybrid Renewable Energy Systems for Self-Sufficient Residential Use in Germany and the Czech Republic," Energies, MDPI, vol. 12(21), pages 1-17, November.

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