Windmill Rent Calculation


Windmill Rental Calculator

Enter the total output size of the wind farm, in Megawatts, you wish to build on your property. As a practical matter, this number ends up being less than is projected because of the spacing, commonly referred to as "offsets," required by zoning and or engineering parameters.

Enter the size of the windmills, commonly referred to as wind turbines. The number of turbines needed must match the availability of space on the proposed site. After knowing how many turbines are needed, it must be geographically possible to fit them on the site. Use whole numbers in the tables below.

Basic Assumptions  Value Description

Buyback Price per Kwh  

 

The number of cents that the power company pays. 

Utilization Rate Percent

 

A function of windspeed, altitude, temperature and humidity. Usually 18 to 25. 

Rental Percent of Gross  

 

A commission is usually paid on gross as a joint venture for rent. 



Scenario  Size of Site in Megawatts  Turbine Size Turbines Needed  Contractor's Gross $ Yield  Annual Rent from Income 
 

 

 

 

 

 


Enter the price that the windmill contractor is expected to receive from the power grid. This is known as the "buyback" price, expressed in cents. You probably pay 5 to 10 cents per Kwh at home. The contractor of the wind farm will get much less, perhaps 3 to 6 cents per Kwh, because the electricity must be delivered to the end user after it is produced at your site.
The utilization rate is not something that a person is going to know intuitively. 25% is very good. 20% may be enoungh. It is a function of average wind speed, air density, contour of the land relative to prevailing winds, and how well windmills are placed on the property. Air density is a function of temperature and barometric pressure. Mountain tops have a reputation for having lots of wind, but the elevation reduces air density. This rate can only be estimated. It is not actually known until the site is up and running. Most of the time windmills stand idle, waiting for the windy season or time of day.

Rent is often paid by the contractor to the landlord as percent of gross revenues generated from the sale of energy bought back from the contractor by the power grid company. This percent usually ranges from 3 to 6 percent. This is something that must be negotiated with the contractor arranging to build the windfarm on the site.

Contractors may be reluctant to discuss these calculations.

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