U.S. Businesses Are Rediscovering Small Wind Turbines

U.S. businesses were using small-scale wind turbines to generate their own electricity long before massive wind farms were commonplace. The small wind market is still struggling to reach mainstream mass, but the technology has improved over recent years and costs are coming down. New incentives are also available to make small wind projects a more attractive option for businesses seeking on-site renewable energy for themselves and their communities.

How do small wind energy systems work?

The small wind market includes two types of projects that sometimes overlap. Both have the potential to make a significant contribution to the nation’s renewable energy profile, as measured by the U.S. Department of Energy.

One type of small wind project consists of wind turbines that are literally small in size. Where local zoning regulations permit, they can be installed at homes, farms or small businesses to open up access to renewable energy. A 10-kilowatt turbine, for example, can generate enough electricity for a typical home.

On a national level, those small kilowatts can add up to make a significant impact. A 2002 small wind “roadmap” from the U.S. Department of Energy estimated that small wind turbines could produce a total of 50,000 megawatts of electricity by 2022, accounting for 3 percent of U.S. generating capacity. That rate of growth failed to materialize, with only around 30 megawatts of small wind units sold globally in 2021, according to research from the European Academy of Wind Energy, leaving much of this energy potential still to be tapped. 

The other type of small wind project refers to wind turbines of any size that provide electricity for use on the property where they are located, or for distribution to other electricity users on a local grid. Called “distributed wind,” these projects are also valued for their contributions to the nation’s generating resources. Farms, businesses or communities can use distributed wind as a buffer against energy cost increases, to provide backup power during outages, or to electrify things like water pumps and telecommunications towers in remote places, according to the Energy Department's Wind Energy Technologies Office.

Because distributed wind projects are typically specific to a single property or structure, they usually consist of just one turbine that is relatively small in size. However, larger-sized, multi-turbine projects are also becoming more common in the distributed wind field. 

Small wind is finally going mainstream

When small wind turbines became more popular on the heels of the 1970s oil crisis, the industry faced criticism for relatively inefficient technology, questionable sales practices, and the absence of uniform standards. Since the early 2000s, though, small wind manufacturers, the Energy Department and other stakeholders have collaborated to form a reliable marketplace characterized by uniform assessment and certification systems.

That multi-stakeholder support is beginning to show results in the distributed wind marketplace. This week, the Department of Energy’s Pacific Northwest National Laboratory summarized the state of affairs in its newly released Distributed Wind Market Report, showing that more turbines were installed in 2023 than in all of 2021 and 2022 combined.

The report links the sudden growth spurt in the distributed wind market to new tax incentives, including provisions of the 2022 Inflation Reduction Act. A new round of funding from the U.S. Department of Agriculture’s Rural Energy for America Program also played a role.

Just as significantly, distributed wind projects are emerging in new markets, the report finds. Once mainly confined to farms, schools, government facilities and other institutions, distributed wind projects are finding their way into the manufacturing sector.

Larger-sized wind turbines are also becoming more common in distributed wind projects. The report tracked almost 2,000 new distributed wind turbines in 2023 with a combined capacity of 10.5 megawatts, most of which came from turbines with a capacity of 1 megawatt or more. 

Meanwhile, continued improvement in vertical axis wind turbine technology also makes development possible in smaller spaces. Unlike conventional wind turbines that sweep the sky with long blades, vertical axis turbines spin around a central pole like a carousel, saving a considerable amount of space and opening up a new field of locations for small wind projects.

More on-site wind power for U.S. businesses

One important indication of the increased confidence in distributed wind is the willingness of businesses to invest in larger turbines, and that is also reflected in the Pacific Northwest National Laboratory report.

While farms continue to be important markets for distributed wind, the report found that 42 percent of distributed wind projects were installed by the commercial sector in 2023, compared to 34 percent for agricultural operations.

One example the researchers cite is a new 2.8-megawatt wind turbine installed by the electric vehicle manufacturer Rivian for its factory in Normal, Illinois, representing a new market for distributed wind in the auto industry. The report also points to a trio of 1.5-megawatt turbines installed at the Martin Marietta lime plant in Woodville Township, Ohio, as examples.

Follow the money — and the guidance

A collaboration between the U.S. departments of Agriculture and Energy aims to grow the small wind market further by encouraging 400 farmers to install distributed wind projects on their properties. In support of that program, the two agencies are also tapping wind industry stakeholders for funding under the Competitiveness Improvement Project program. The awarded projects include small-sized turbines, rooftop turbines, and vertical axis turbines.

Concurrently, the Energy Department has assembled an online small wind guidebook for small businesses, farmers and homeowners. The guide includes a question-and-answer section to help property owners determine if a small wind project is feasible and beneficial for them.

One additional advantage for businesses is the visibility of wind turbines. Compared to rooftop solar panels, which are often difficult to see from street level, a small wind project — or a hybrid wind-plus-solar project — signals a business’s commitment to renewable energy. Despite the growing partisan divide, that’s a commitment worth emphasizing.