After the Arab oil embargo of the late 1970s, incentives created by the Federal government helped drive large-scale wind power homes for both commercial and residential customers. These incentives dwindled until eventually a tax credit for residential-scale wind energy was no longer offered.
A number of states, however, have incentive programs. According to the New York State Energy Research and Development Authority, a homeowner in that state could expect to get approximately $4,000 per electric meter for a wind power home turbine. That would cover about 30 to 40 percent of the project cost. Some states have also enacted net metering laws that require utilities to purchase excess power generated by a residential wind power home at retail rather than wholesale prices.
Environmental concerns, more than cost savings, largely drive many new residential turbine installations. Even with state incentives, it can take 20 years to pay back the installation cost.
This could all change with the current administration’s economic stimulus package and budget allocations. On February 17, 2009 President Obama signed the American Recovery and Re-investment Act of 2009 into law. With a significant emphasis on wind power home technology deployment and job expansion, the bill improved upon the 2008 tax credit, by removing “cost caps.” This change allows consumers and small businesses to take a 30% tax credit off the installed cost of a wind turbine. To a consumer or business purchasing a single 2.4KW residential wind power home turbine, it will double their credit. Additionally, businesses will also have the option of receiving their credit in the form of a cash grant.
