Cost Analysis: How Much Do Commercial Wind Turbines Really Cost?

by | May 19, 2024 | Renewable Energy, Wind Energy

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Understanding how much do commercial wind turbines cost is critical for investors, regulators, and environmentalists alike. This cost analysis examines the numerous aspects contributing to the total cost of wind energy installations, from initial installation to long-term maintenance. By breaking down these factors, we hope to present a complete picture of the actual costs of utilising wind power and insights into its economic viability and long-term sustainability.

Commercial Wind Turbines Cost

How much do commercial wind turbines cost? A utility-scale wind turbine costs between $1.3 million to $2.2 million per MW of installed nameplate capacity. Most commercial-scale turbines installed nowadays are 2 MW in capacity and cost between $3 and $4 million to install.

how much do commercial wind turbines cost

How much do commercial wind turbines cost will vary significantly based on the number of turbines purchased, the cost of financing, the date the turbine purchase agreement was made, construction contracts, the location of the project, and other considerations. Wind projects’ costs include expenses other than turbines, like wind resource assessment and site analysis; construction; permitting and interconnection studies; utility system upgradation, transformers, protection and metering of the equipment; insurance; operations, warranty, maintenance, and repair; and legal and consultation fees. Other factors that will affect your project economics include taxes and incentives.

Function Cost Range
Manufacturing 70% of total cost
Rotor & Blades $500,000 to over $1 million
Generator & Gearbox 35% of turbine cost
Tower $300,000 to over $1 million
Transportation & Installation $30,000 to over $100,000 (transportation), $100,000 to $150,000 per MW (installation)
Operations & Maintenance $42,000 to $48,000 per year
Insurance $8,000 to $15,000 per year
Administrative & Legal $6,000 to $10,000 per year

How much do commercial wind turbines cost depends on a variety of factors, including component type and local availability. As a capital expenditure, installation and long-term upkeep will cost your company money, but they should result in long-term savings. Due to higher wind speeds, rural locations gain the most from these savings. Typically, the actual turbine costs 69% of the whole project. This implies that independent costs, such as foundation construction, cable infrastructure, and grid connection, might all add up.

Smaller turbines that create roughly 2,000 kWh (kilowatt hours) per year cost between $2,000 and $8,000; however, acquiring and installing larger units can cost $27,000 or more, although these models produce more power: around 9,000 kWh per year. More giant turbines yield a little over 40MWh each year, roughly equivalent to powering a factory for a year. Roof-mounted turbines are unquestionably the cheapest to purchase (as little as $1,360) but produce the least energy.


Once you’ve determined the type of turbine you’ll be installing, you can begin the installation and commissioning process!

Assess the site and research the best position, mainly determined by the type of turbine you want to install and any obstructions to wind flow. If you install a roof-mounted system, you must first do a structural analysis to ensure the structure can accept the turbine.

Stand-alone turbines may require foundations and trenches for wires to the control box and inverter. The US Distribution Network Operator needs to be notified before installation to verify the electrical connection to the grid is safe. However, your installer may deal with this for you.


In conclusion, how much commercial wind turbines cost reveals a complex financial landscape driven by a range of factors such as initial capital expenditure, operational and maintenance expenses, location, and size of deployment? Initial costs, typically between $1.3 million and $2.2 million per MW, are high but can be reduced through economies of scale and technological developments. Although continuing, operational and maintenance expenditures typically account for only 20-30% of overall lifespan costs. Furthermore, strategically selecting turbine sites with excellent wind conditions and closeness to existing infrastructure can improve cost-effectiveness. Moreover, government incentives and developments in turbine technology continue to reduce prices, making wind energy more competitive with traditional energy sources. Finally, while wind energy requires a significant initial investment, the long-term financial and environmental benefits demonstrate its potential as a sustainable and economically sound energy alternative.

Also Read: Wind Power For Home: A Guide To Residential Wind Energy Solutions



  • Michael Thompson

    Michael Thompson is an esteemed expert in the renewable energy sector, with a profound experience spanning over 25 years. His expertise encompasses various sustainable energy solutions, including solar, wind, hydroelectric, and energy efficiency practices. Michael discusses the latest trends in renewable energy and provides practical advice on energy conservation.

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