2010 awea small wind turbine global market study

8/4/2019 2010 AWEA Small Wind Turbine Global Market Study

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AWEA Sma Wid Trbie

Goba Maret Std

YEAR ENDING 2009



Smmar 3

Srve Fidigs ad Aasis 4

Growth Potetia ad Idstr Projectios 7

States 8

Maret Factors ad Deveopmets 9

Costs 17

Dispaced Carbo Dioxide 17

Bidig-Moted Trbies 17

Maactrig 18

The Goba Maret 21

Soar Photovotaics 23

Cocsio ad Otoo 26

Methodoog ad Reportig Maactrers 26

Bibiograph ad Other Resorces 28

Edotes 30

Tabe o Cotets



2010 SMAll WInD TuRBInE GlOBAl MARkET STuDy | 3

Sma Wid Reaches 100 MWMiestoe i u.S. with 15% Growth

Despite a ecoomic dowtr, the u.S. maret or sma wid

trbies – those with rated capacities o 100 iowatts (W)1

ad ess – grew 15% i 2009 with 20.3 Megawatts (MW) o

ew capacit ad $82.4 miio i saes. This growth eqates

to ear 10,000 ew its ad pshes the tota istaed

capacit i the u.S. to 100 MW.2

Ha o this 100-MW miestoe capacit came withi the pastthree ears o the idstr’s 80-ear histor. Maactrers

attribte this growth to a mixtre o ew ad improved edera

ad state icetives, optimistic private eqit ivestors, ad

sstaied cosmer demad.

The 2009 America Recover ad Reivestmet Act expaded

the edera ivestmet tax credit (ITC) or sma wid trbies,

aowig cosmers to tae 30% o the tota cost o a

sma wid sstem as a tax credit. I 2009 a additioa

$80 miio o private eqit was ivested ito maactrig

compaies drig the pea o the ecoomic recessio,

boostig to at east $252.7 miio the tota o otside eqit

ivested across 20 maactrers (most o them u.S.-based)

over the past ve ears. This ivestmet provided compaies

with capita to icrease prodctio, ower costs, meet

sstaied demad, ad eve acqire competitors.

Other Ke Statistics:

95% o a sma wid sstems sod i the u.S. ast ear

were made b u.S. maactrers

2/3 o a sma wid sstems sod i the word ast ear

were made b u.S. maactrers

Approximate 250 compaies wordwide maactre or

pa to maactre sma wid trbies, 95 o which—

more tha oe-third—are based i the u.S.

A estimated 100,000 its have bee sod i the u.S.

sice 19803

2009 U.S. Sales 2009 Global Sales

20.3 MW 42.5 MW

15% growth over 2008 10% growth over 2008

9,800 its 21,000 its

$83 miio i saes $189 miio i saes

Smmar

Table 1



4 | AMERICAn WInD EnERGy ASSOCIATIOn

Based o a 2010 AWEA srve o maactrers arod the

word, the u.S. maret cotied to grow i 2009 primari

becase o the ew u.S. edera ivestmet tax credit

(ITC), sstaied cosmer demad, extera private eqit

ivestmet i maactrig, ad the abiit o maactrers

to ideti ad everage specic maret iches.

The ITC was perhaps the most importat actor i ast ear’s

growth. The credit opeed marets that have historica bee

jst ot o reach, set a power siga to ivestors abot

the techoog’s promise, ad heped cosmers prchase

sma wid sstems drig a recessio whe other acig

mechaisms were hardest to obtai.

The eactmet o the ITC – the idstr’s top priorit –

has aso aowed idstr members ad advocates to shit

their poitica eorts toward other saiet isses, icdig

permittig, et meterig ad stadardized itercoectio

regatios, ad the appropriatio ad aocatio o edera

research ad deveopmet ds. Maactrers have aso

ocsed more resorces o improvig trbie perormace,

certiig eqipmet to meet a ew created perormace

ad saet stadard,4 redcig costs, stregtheig deaer

etwors, deig ew maret iches, ad scaig

p prodctio.

u.S. istaed capacit icreased b 15% ast ear, bt

the mber o its sod decreased b 6%. This tred

demostrates a cotied maret shit toward arger, grid-tied

sstems. Sice 2007 the residetia ad commercia / ight

idstria maret segmets have emerged as domiat, with

saes o o-grid trbies (geera those smaer tha 1 W

ad sed to charge batteries) remaiig fat.

Srve Fidigsad Aasis

Fig. 1: U.S. SMALL TURBINE MARKET GROWTH By SEGMENT

0

2000

4000

6000

8000

10000

11-100kW1-10kW0-0.9kW

Turbine Size Range

k W

Fig. 2: 2009 GLOBAL SALES

0

2000

4000

6000

8000

10000

11-100kW1-10kW0-0.9kW

N e w C a p a c i t y ( k W )

Turbine size range

(I geera, sstems 0-0.9 W correspod to the o-grid maret,

sstems 1-10 W correspod to the residetia maret, ad sstems

11-100 W correspod to the commercia / ight idstria maret.)

O-Grid

O-Grid

2006

2007

2008

2009




Maactrers report that whie iterest i sma wid hasicreased throgh the ecoomic recessio, cosmers are

deaig prchasig decisios ti acig becomes more

avaiabe ad aordabe. Thereore, as the ecoom recovers,

ma maactrers expect a srge i saes.

Units kW

O-Grid 15,500 7,600

O-Grid 5,200 34,400

Tota 20,700 42,000

Fig. 3: GROWTH OF U.S. SMALL WINd MARKET

year Units kWSales $US

2001 2,100 2,100 (ot avai.)

2002 3,100 3,100 (ot avai.)

2003 3,200 3,200 (ot avai.)

2004 4,671 4,878 $1,489

2005 4,324 3,285 $990

2006 8,329 8,565 $3,3202007 9,092 9,737 $4,197

2008 10,386 17,374 $7,266

2009 9,800 20,300 $8,240

0

5000

10000

15000

20000

Sales of Units Sold($US x 10,000)

CapacitySold (kW)

Small WindUnits Sold

Table 2. 2009 Global Sales




Demad DriversCosmer demad coties to be eed b a combiatio

o the oowig actors, thogh ecoomics ad eviromet

remai primar cocers:

Economics

legth o pabac period, or IRR*

Fiacia hedge agaist risig prices o covetioa

eectricit

Fiacia stabiit compared to voatie prices o

covetioa eectricit

Practicalit

Reiabiit o eectricit spp

natra sergism with soar PV techoog

Diversit o appicatios, icdig those remote

ad o-grid

Values

Eviromet

Idepedece

Image ehacemet

Cosmer choice

Se-reiace

Do-It-yorse

High visibiit, particar or commercia cosmers

drivers Specifcall For Real Estate developers

Maretabiit o a “Zero-Eerg Home”

Practicait o itegratig sma wid ad soar

hbrid sstems

Possibe avaiabiit o rebates or both deveopers

ad cosmers

Whether istaatio cost ca be bit ito the price

o a propert

Roe i deig the progressive character o eighborhood

Appea o “retig vs. owig” eectricit

* Many investors view the internal rate o return (IRR) o a

renewable energy technology to be a superior method o

assessing its value to its payback period. IRR, not payback

period, is the primary tool used to assess the proftability

o other types o fnancial investments (IRAs, stocks, etc.).

Investors also point out that unlike mutual unds and stocks,

renewable energy systems are generally ar less susceptible

to external risk.5 Measuring proftability in terms o payback also

reinorces the negative perception that renewable energy is

unaordable and that consumers should postpone purchases

until technological improvements reduce costs. However, whencompared with other investment options using IRR, renewable

energy investments can become much more attractive.




The word’s eadig 15 maactrers cotie to predict

expoetia saes growth i the u.S. maret over the ext ve

ears, with projectios o over oe gigawatt (1,000 Megawatts)

o cmative istaed sma wid capacit i the u.S. b 2015,

despite crret ecoomic coditios ad the cooed saes o

2009.6 The ecoomic recessio ed these maactrers to

pare dow their growth projectios somewhat rom ast ear’s

report,7 bt the remai optimistic abot achievig their target.

Primar drivers icde the eight-ear 30% edera ivestmet

tax credit eacted i October 2008, recet ad potetia

private eqit ivestmet, ad greater eqipmet spp ad

maactrig capabiities.

Growth Potetia adIdstr Projectios

Table 3. Gri-Tie Resiential Market Potential

Potential Installations, Millions 2010* 2020**

Homes with ½ to 1 acre o ad 12.0 13.9

Homes with >1 acre o ad 25.2 29.3

Gross potetia mber o homes or sma wid trbies 37.2 43.2

net potetia mber o homes or sma wid trbies† 13.0 15.1

I each o these 15.1 miio homes istaed a 7.5 W wid trbie, the tota geeratio capacit wod be 113,000 MW.

* Miios o u.S. homes coected to the tiit grid

**Growth accordig to u.S. Cess Brea, America Hosig Srve, 1998.

†Approximate 35% o these homes wi have a sciet wid resorce, deed as a u.S. Departmet o Eerg wid cass o 2 or better. To meet the eectrica eeds o a tpica u.S.

home, a sma wid trbie i a moderate wid regime mst have a rotor diameter o 16 to 25 eet ad be istaed o a tower 60 to 150 eet ta. These dimesios are sitabe or homes

o sma ot sizes.

†† A data i this tabe are tae rom the AWEA Sma Wid Trbie Idstr Roadmap (2002).




Maactrers report that the astest growig marets were i

the Midwest ast ear, bt the argest marets overa remai i

the northeast, pper Midwest, ad Caioria.

I geera, states that oer sma-wid cosmer icetives

at a eve o $2 per Watt o capacit or more attract the

strogest share o the maret. I recet ears the states with

the highest saes percetages have bee CA, nV, AZ, OR,

ny, MA, ad OH. A had o states, particar new Jerse,

have og had strog maret potetia de to icetives ad

robst tiit poicies, bt oca permittig chaeges have

throtted the marets’ potetia. I ear 2010, however, new

Jerse ad Deaware joied seve other states (CA, nV, WI,

VT, MI, OR, ad nH) i eactig egisatio to streamie

the permittig process at the state eve, opeig the

potetia o these marets.8 (See also “Market Factors and

Developments,” page 9)

Qatiig the size o state-eve marets remais dict

becase o the dispersio ad compexit o deaer etwors.

Most maactrers are abe to report saes gres b state

or regio. Coseqet, a deitive measremet o state

marets is beod the scope o this std.

However, maactrers cosistet report that state marets

ca be assessed, geera, i proportio to oe aother

based o the extet o their respective icetive programs ad

other pbic poicies. Caioria, or exampe, remais ar ad

awa the argest state maret de to its reative og histor

o geeros icetives ad streamied permittig aws.

Dieret poicies ad acia icetive strctres aso aect

dieret maret iches. For exampe, robst et meterig

poicies geera ope marets or trbies 10 W ad arger,

ad acia icetives or residetia cosmers geera

create marets or trbies 20 W ad smaer.9

States




Feeral incentives

Installer an equipment certifcation

Eternal investment

Zoning/permitting

Improve resource assessment technolog

Consoliations

State policies an incentives

The econom

Improve ealer/installer networks

“PACE” bons

Government attention

Seasonalit

Win-iesel hbris

Electricit prices

Utilit policies

Increase public awareness

Workorce evelopment

FERC ruling

Feeral renewable electricit stanar

Feeral climate change legislation

Feeral incentives. O October 3, 2008 Cogress passed

the Emergec Ecoomic Stabiizatio Act o 2008, H.R. 1424,that icded a eight-ear, 30% edera-eve ivestmet

tax credit (ITC) to hep cosmers prchase qaied sma

wid sstems with rated capacities o 100 W ad ess. The

amot o this credit was striget capped, however, ti

the passage o The America Recover ad Reivestmet Act

(ARRA) o 2009, H.R. 1, o Febrar 17, 2009, which removed

the cost caps. A 30% ITC has sice bee avaiabe or sma

wid trbie cosmers. The egisatio, i its crret orm,

wi ast throgh December 31, 2016.10

This egisatio mared the rst edera icetive or sma wid

techoog sice 1985 ad provides the idstr with stabe,

og-term poic that has historica bee ot o reach or

other reewabes. Idstr members vae its passage as a

importat step toward achievig poitica parit with the soar PV

idstr, sma wid’s maret coterpart, which has ejoed

a edera ITC sice 2005. Sti, maactrers report, opsided

state-eve icetives cotie to avor soar PV ad mae tre

maretpace parit dict to achieve.

The ARRA aso created a u.S. Treasr grat program (Sectio

1603) aowig commercia cosmers, or a imited time, to

receive pamets i ie o the ITC. This ew icetive strctre

aowed icetives to fow to projects ad taxpaers more

immediate tha a tax credit, which mst be redeemed at the

ed o the sca ear. The grat program has bee istrmeta

i growig a segmets o the wid ad soar idstries, ad

AWEA is obbig or its extesio throgh 2012.

Additioa, the ARRA created a 30% ITC to hep

maactrers o reewabe eerg eqipmet, ie sma wid

trbies, ivest i the creatio, expasio, or re-eqipmet o

maactrig aciities (see also “Manuacturing,” page 18).

Installer an equipment certifcation. I December 2009,

AWEA aized a techica stadard that ca ow be sed

votari to test sma wid sstems to perormace ad

saet criteria. Third-part orgaizatios ie the Sma Wid

Certicatio Coci (SWCC)11 ca ow certi sstems tested

to this stadard. A average o 6-12 moths o ed testig is

reqired to meet the stadard’s reqiremets, so o trbie

wi ie become certied ti the ed o 2010.

Certicatio has og bee a major goa o the sma-wid

idstr, which or decades has arge bee se-regated.

Idstr members oo to certicatio as a wa to provide

cosmers, regators, ad poicmaers with trasparet

ad credibe iormatio abot the saet, perormace,

ad reiabiit o the techoog. Ma i the idstr seecerticatio as a strog sig o the idstr’s matrit ad

as a bidig boc or astig growth.

Maret Factorsad Deveopmets




The popar Energy Star 12 govermet program, admiistered

b the Departmet o Eerg (DOE) ad the Evirometa

Protectio Agec (EPA) to certi ma eerg-eciet

cosmer goods, wi ie icorporate sma wid sstems

ad other reewabe geerators i the ear tre. Idstr

sees great potetia or this iitiative to tae sma wid

trbies rther ito maistream marets. The DOE ad EPA

idicate the wi re heavi o SWCC certicatio whe

gratig seective Eerg Star abes to qaied eqipmet.

The north America Board o Certied Eerg Practitioers

(nABCEP)13 aso pas to begi the process o certiig

sma wid trbie istaatio proessioas i the a o 2010.

This votar program aims to oer experieced istaers

a opportit to ideti ad maret themseves as experts

i their ed. Istaatio is a importat actor i a trbie’s

perormace, cost, ad pbic acceptace.

Whie eqipmet ad istaer certicatio programs wi be

votar, maret orces are ie to istittioaize them

throghot the idstr. A mber o states ad ocaities have

idicated that the pa to mae certicatio a reqiremet to

coect to the eectricit grid ad/or obtai a zoig permit.

Icetive program maagers i meros states idicate

the wi reqire certicatio, or evidece o itet to achieve

certicatio, i order to be eigibe or dig. These states

icde AZ, CA, IA, MD, ME, MT, nC, nV, OH, VT, ad WA.

Eternal investment. last ear a additioa $80 miio

o extera private eqit was ivested i maactrig

compaies drig the pea o the ecoomic recessio,

boostig to at east $252.7 miio the tota o otside eqit

ivested across 20 maactrers (most o them u.S.-based)

over the past ve ears. This ivestmet provided compaies

with capita to icrease prodctio, ower costs, meet asstaied demad, ad eve acqire competitors.

Drig ecoomic recessios ad other periods o stagatio

ad high ris, private eqit ad vetre capita ivestors

geera choose to reivest i compaies the aread spport

rather tha oo or ew ivestmets. Cosistet with this tred,

severa sma-wid maactrers that received dig

i the past ve ears received additioa ds i 2009.

Thirt-two percet o a vetre capita i the u.S. i 2009 was

ivested i the cea techoog sector bt cotied to avor

the soar idstr, which received ear a qarter ($1.2 biio)

o a cea-techoog vetre dig i 2009.14

Zoning/permitting. Poor or oexistet oca permittig

practices cotie to thwart a estimated 1/3 o a

paed sma wid trbie istaatios. Over restrictive

ad cmbersome regatios ca imit a trbie’sprodctivit, discorage cstomers ad ivestmet, ad

repe oca idstr-reated bsiesses rom commities.

Fig. 4: TOP VENTURE CAPITAL CLEAN-TECH SECTORS

Sorce: Ceatech Grop (ceatech.com)

Water2%

Solar21%

Transportation

(includingelectric vehicles,

advanced batteries,fuel cells)

20%

Energy Efficiency18%

Biofuels10%

SmartGrid7%

2009




However, a sma bt growig tred toward statewide

permittig ma redce this barrier. To date, ie states have

eacted statewide aws that, to varios degrees, streamie

the permittig o sma wid sstems. With a estimated

25,000 dieret oca zoig jrisdictios i the u.S.,15 AWEA

ad idstr members are attemptig to address permittig

chaeges at the broader state eve o govermet.

For more iormatio o permittig chaeges ad sotios,

see the 2008 AWEA permittig gideboo, “I the Pbic

Iterest: How ad Wh to Permit or Sma Wid Sstems,”

at www.awea.org/smawid/pd/IThePbicIterest.pd .

Improve resource assessment technolog. Accessig high

average prevaiig wid speeds is oe o the most importat

actors i a trbie’s perormace. A mber o private-

sector compaies deveop advaced techoogies to ideti

geographic regios with greatest average wid speeds, ad

recet more compaies are assessig coditios i ver

specic ocatios to ideti sma-wid sites. Traditioa

wid resorce maps tpica evaate wid coditios at

a height o 50 meters above grod, which correspods

to the hb heights o arge-scae trbies. Sma-trbie

site assessors mst extrapoate rom this data to app it to

sma wid sstems, which tpica reach o higher tha 30

meters. Additioa, o aordabe too is preset avaiabe

to assess wid resorces i rba or bit-p eviromets.

Becase site assessmet is sch a importat actor i the

techoog’s viabiit, private compaies are ocsig more

o improvig aatica resorce modeig toos.

The north America Board o Certied Eerg Practitioers

(nABCEP) is aso i the process o iitiatig a ew credetia

to certi Wid Site Assessors who evaate wid resorce

coditios ad trbie prodctio potetia at site-

specic ocatios.

The pbic sector is taig ote as we. I Ma 2009 the

u.S. Departmet o Eerg awarded a $475,000 grat to a

private compa to deveop a cosmer-ried “site aasis

too” to hep cosmers predict a trbie’s perormace,

evirometa impact, ad other istaatio aspects.16

State govermets that oer acia icetives or sma

wid eqipmet are idirect vested i the techoog’s

perormace, ad advaced resorce assessmet toos ma

icrease d admiistrators’ codece i the techoog

ad ead to improvemets i cosmer icetives.

Consoliations. new govermet icetives mae the maret

more attractive tha ever beore to start-p compaies hopig

to compete or these ds, growig cosmer iterest, ad

extera ivestmet. More tha 250 idetied maactrers i

the word are competig or a arge bt ite mber o maret

iches to serve, ad some ma oo to cosoidatio over the

ext ew ears as the best meas to grow.

Severa promiet maactrers were acqired b other

compaies or ed or barptc ast ear. Reasos are as

varied as the compaies, bt some acqisitios were abetted

b acqirig compaies’ abiit to secre extera ivestmet

i recet ears. As private extera ivestmet i the idstr

coties to cimb ( see “External investment,” page 10), more

compaies ma oo to mergers ad acqisitios as eciet

was to expad qic ito the growig maret.




State policies an incentives. At the state, tiit, ad oca

eves, poicies cotie to be ragmeted ad chagig – bt

geera improvig – across regios ad eve commities,

as istrated i the maps above.

Top state, tiit, ad oca poic goas or the idstr

cotie to be to:

Streamie zoig ordiaces at the oca ad especia

state eves,

Icrease the avaiabiit ad size o acia icetives,

Stadardize grid itercoectio res ad procedres,

adImpemet or improve state/tiit et meterig poicies.

Growth i the mber o maactrers, deaers, istaers,

spp chai members, istaed its, ad advocates has

ed to a arger idstr presece at oca eves, orcig these

isses to the ore i oca ad state egisatres.

Fig. 5: STATE POLICIES ANd INCENTIVES

October 2008 April 2010

Income Tax Credits

Residential Small Wind Incentives

Property Tax Incentives

Buydown/Grants& Net Metering

Buydown /Grants,Net Metering,& Loans

ProductivityIncentives& Loans

Net Metering,Loans & Prod.Incentives

Buydowns/grants Productivity Incentives Minor Incentives

$

$

$

$ $

$

$

$

$

$

$$

$

$

$

$

$

RPS

Feed-in Tariff

$Puerto Rico

Buydown/Grants ProductivityIncentives


Net Metering& Loans

Net Metering

Loans

$Puerto Rico

Residential Small Wind Incentives

$

$

$

$

$

$ $

$

$

$

$

$$

$

$

$

$

RPS

Buydown/Grants& Net Metering

Buydown /Grants,Net Metering,& Loans

ProductivityIncentives& Loans


Buydowns/grants Productivity Incentives Minor Incentives

Buydown/Grants ProductivityIncentives


Net Metering& Loans

Net Metering

Loans

Property Tax Incentives

$ Income Tax Credits

l i i – ll i ll i l - l

w w w . d

s i r e u s a . o r g

Maps prepared b Trd Forsth o the natioa Reewabe Eerg laborator. Data sorce: DSIREuSA




The econom. Maactrers report that the ecoomic

recessio begiig i the a o 2008 cased ma

cosmers, particar homeowers, to dea their decisios

to prchase sma wid trbies. The recessio cased the

vae o ma homes to decie ad imited the avaiabiit o

credit, particar home eqit credit, which ma cosmers

re o to ace sma wid projects. Cosmer iterest

remais strog, however, ad as the ecoom recovers

maactrers predict a resrgece i saes i the residetia

ad ight idstria maret segmets.

Improve ealer/installer networks. Ma eadig

maactrers are reewig their eorts to improve their

deaer ad istaer etwors (ote oe ad the same). These

maactrers are ivestig heavi i the seectio ad traiig

o these proessioas who wor most cose with the ed-ser/

cstomer or the 15-25 ear iespa o the trbie. Istaers/

deaers are aso tpica the same parties who assess sites

or resorce qait ad obb or avorabe oca icetives

ad zoig regatios. The are thereore e to bidig ad

preservig oca marets or sma-wid techoog.

“PACE” bons. A Propert-Assessed Cea Eerg (PACE)

bod is a acia too to hep cosmers ivest i ote high-

iitia-cost reewabe eerg eqipmet or eerg eciec

measres. PACE bods are issed b micipaities ad

sa prchased b istittioa ivestors sch as bas,

pesio ds, or mta ds. Micipaities i tr ed the

proceeds to residetia or commercia appicats to hep them

prchase reewabe eerg eqipmet or ace eerg

eciec retrottig measres. The cosmers the repa

their oas over 20 ears via a aa assessmet o their

propert tax bi.

A PACE bod program thereore aeviates two barriers to thesma-wid maret: high p-rot costs, ad pabac periods

that exceed the term o propert owership.

loas sorced rom PACE bod saes are attractive to

cosmers becase the ca be combied with other state,

tiit, ad edera icetives. The aso oer a aterative

to home eqit oas, the pricipa acig mechaism or

residetia sma-wid cosmers, which have bee dict to

obtai i the crret ecoomic recessio.

As reported i previos AWEA maret stdies, ivestmets

i sma wid sstems ca become attractive i the

ivestmet’s pabac period exceeds the time or which

the trbie wi be owed ( see page 6 or a discussion o

using payback period versus IRR in marketing approaches).

Thereore, or exampe, i a residetia trbie’s pabac

period is seve ears, bt the homeower pas to se the

propert i ve, the ower wi ot be abe to ejo the acia

beets o the sstem.17 Becase a oa aced throgh a

PACE bod is repaid over 20 ears throgh propert taxes,

a homeower who ses a propert (ad a trbie) beore the

trbie’s cost is recoped is ot brdeed with paig the

cost o the trbie. Istead, the ext ower o the propert

(ad trbie) assmes pamet.

O the opposite side o the dea, istittioa ivestors d

PACE bods attractive becase the bods are baced b

propert taxes, which have ver ow deat rates ad ca

srvive propert orecosres.

PACE bods aso have poitica appea. Their impemetatio

heps to empo eqipmet istaers oca, ecorages cea

eerg, ad raises taxes o o the propert ower(s) who

eect to participate.

To date, PACE bods are avaiabe i 18 states, ad some

edera egisators are ooig to hep eabe their creatio at

the state eve. For more iormatio see http://paceow.org.




Government attention. Sma wid’s growth ad potetia

has attracted the attetio o regators ad egisators at a

eves o govermet, who are icreasig desigig pbic

poic with this idstr i mid. ueqa poic treatmet

betwee sma wid ad soar PV persists, particar at the

state eve, bt sma wid is bidig a strog presece at

bargaiig tabes.

The edera sma wid trbie ITC provided ot o acia

spport or cosmers ad maactrers, bt aso a strog

positive siga to ivestors, state govermets, ad media

abot the viabiit o the idstr.

Aso at the edera eve, the u.S. Departmet o Eerg’s

high competitive Advaced Research Projects Agec-

Eerg (ARPA-E) program recet awarded two o

or reewabe eerg projects to sma wid trbie

deveopmets.18 The roe o ARPA-E is to ivest i high-ris,

high-reward techoogies ad cocepts. Idstr members do

ot geera view techoogica breathroghs as ecessar

to achieve their growth goas, bt the ARPA-E awards hep the

idstr bid po its credibiit ad maistream stats.

Seasonalit. Sma wid trbie saes ted to decie ate i

the ear as eerg cosmptio tpica as, ad icrease i

ate sprig ad smmer moths as eerg cosmptio ad

costs rise. Some maactrers assess this fctatio

at approximate 20%.

Win-iesel hbris. Hbrid sstems sig both wid ad

diese geerators, sa or remote appicatios, cotie

to be a importat part o the commercia / ight idstria

maret. I 2009 approximate 20% o trbies 50-100 W

were sod or wid-diese hbrid sstems, ear a o which

were i Aasa. Caada is ooig to adopt poicies to attractsome o this maret share. Maactrers report growth i this

appicatio i Caribbea, Pacic, Asia, Rssia marets.

Electricit prices. Eectricit prices across a sectors have rise

b 6% sice 2006 to a average o 9.44 cets/Wh.19 High prices

o traditioa eectricit mae aterative eerg sorces more

competitive on an incremental-cost basis, particularly when factoring

i reewabe eerg’s other acia ad itagibe beets.20

Utilit policies. The qatit ad qait o state/tiit

grid-itercoectio ad et meterig aws ad practices

are geera improvig, thogh sow. These tiit-reated

poicies wi have a icreasig eect i the idstr as the

maret coties to shit toward grid-tied sstems. Whie

baaized ad cmbersome tiit regatios rare thwart

istaatios compete, the ote magi istaatios’ time,

expese, ad compexit.

Cogress is crret cosiderig egisatio that wod

create stadardized, atiowide grid itercoectio ad etmeterig poicies. Streamied itercoectio wod create

more predictabiit i the maretpace ad et meterig wod,

amog other beets, remove disicetives to cosmers

wishig to prchase arger trbies.21

Fig. 6: U.S. RESIdENTIAL ELECTRICITy PRICE TRENdS

Sorce: u.S. Departmet o Eerg, Short-Term Eerg Otoo, March 2010

-2

0

2

4

6

8

10

12

20092008200720062005200420032002200120001999

% C

h a n g e




The natioa Fire Protectio Associatio wi ie create a

sectio i its natioa Eectric Code (nEC) specica or

sma wid trbies i its ext revisio i 2011. The ew

sectio wi expicit ist reqiremets or trbie saet, ad i

tr hep streamie grid itercoectio processes. Eectrica

saet has ot historica preseted a chaege to sma wid

istaatios der existig nEC regatios, bt propoets o

icdig sma wid i the code see it as a ivestmet i the

idstr’s tre ad a catast or growth.

Increase public awareness. A arge share o media iqiries

at AWEA ocs o sma wid isses. Featre stories geera

ivove high-proe istaatios, cosmer sccess cases,

ad permittig chaeges. This pbic exposre, which is

predomiat cosmer-orieted, highights oca poic

eeds ad sotios, geerates cosmer iqiries, ad

presets the techoog as maistream.

However, a sige aied istaatio ca garer as mch pbic

attetio as a doze sccess istaatios. Ma idstr

members report that this eect highights the importace o

care sitig, istaatio, prodct deveopmet, ad testig.

Govermets ad major acia paers have ivested

precedeted eves o dig ad socia capita ito the

sma-wid idstr, ad idstr members wish to gard

these reatioships care.

Icreasig pbicit, pbic icetives, ad competitio rom

aig prices o soar PV techoogies pace greater pressre,

srve respodets sa, o sma wid trbies to perorm

we i the ed. The ew edera ivestmet tax credit is

ecoragig start-p maactrers to eter the maret at

a acceerated rate, ad idstr members are ooig to

eqipmet certicatio stadards to provide a odatio or

this maret growth.

Workorce evelopment. Commit ad techica coeges

are devotig more resorces ad crrica to traiig

proessioas to site, ista, maitai, ad maret sma

wid sstems. Sma-trbie maactrers traditioa trai

istaers ad deaers i-hose, bt as the idstr grows at

crret ad projected rates, maactrers ma reqire more

ed-read proessioas to hep expad their reach. (See also

“Improved dealer/installer networks,” page 13.)

FERC ruling. I ear 2010 the Federa Eerg Regator

Commissio (FERC) red that wid trbies 1 Megawatt (MW)

ad smaer, icdig a sma wid trbies, o oger are

reqired to e a appicatio with the FERC i order to obtai

cassicatio as a Qaiig Faciit (QF). This is expected

to ease the process or sma wid sstems to beet rom

appicabe state/tiit et meterig programs ( see “Utility

policies,” page 14).

The Pbic utiit Regator Poicies Act o 1978 (PuRPA)

estabished a cass or certai eerg geerators caed

“Qaiig Faciities,” or QFs, that wod receive specia rate

ad regator treatmets, icdig the right to se eerg

or capacit to a tiit, the right to prchase certai services

rom tiities, ad reie rom certai regator brdes. Beore

this FERC rig, to be cassied as a QF, a geerator-ower

was reqired to app or this stats throgh a sometimes

oeros process ad pa a ee. The FERC rig (i Docet

no. RM09-23-000) eimiates this reqiremet or geerators

1 MW ad smaer, ad QF appicatios mst ow o meet

techica reqiremets.

The FERC oted that the ig exemptio or aciities

1 MW or ess wi ot weae its roe i overseeig QF

program participatio. Athogh aciities 1 MW or ess

accot or approximate 48% o a QF igs, these aciities

o represet abot 0.5% o the QF capacit certied.

A prchasig tiit ma evertheess appea a exemptio,

bt this FERC decisio shod eimiate ma cost ad timebrdes associated with ig or QF stats.

For more iormatio see

www.erc.gov/idstries/eectric/ge-io/qa-ac.asp .




Feeral renewable electricit stanar. legisatio ma

be cosidered agai i 2010 that wod create a atio-wide

reqiremet or major tiities to derive a certai percetage

o their geeratio rom reewabe sorces b a certai date.

Caed a reewabe eectricit stadard, or RES, this tpe o

poic crret exists i more tha 28 states ad has created

a sstaied maret or reewabes i those jrisdictios.

Depedig o how the poic is strctred, a RES ma

provide a icetive or tiities to ecorage sma-scae,

cstomer-sited reewabes ie sma wid trbies to be

added to the geeratio mix. For more iormatio o the

RES ad other egisatio, see www.awea.org/egisative .

A major RES bis proposed i the recet past wod aow

eectricit geerated b distribted reewabe geerators, ie

sma wid sstems, to be coted as three times as vaabe

as eectricit geerated rom cetraized reewabes. This ma

provide icetives or tiities to ow ad operate sma wid

sstems, to ecorage cosmers to geerate a srps o

eectricit rom their ow sstems, or to b the evirometa

attribtes o a cstomer’s excess geeratio i the orm o

reewabe eectricit credits, or RECs.

The u.S. Hose o Represetatives passed The America

Cea Eerg ad Secrit Act (H.R. 2454), a comprehesive

eerg ad cimate bi, o Je 26, 2009. The bi cotais a

RES that wod reqire major eectric tiities to derive 20% o

their geeratio rom reewabe sorces b 2020, bt aow

or 8% o the reqiremet to be met throgh eerg eciec

improvemets. The Seate Eerg ad natra Resorces

Committee reported a eerg bi, The America Cea

Eerg leadership Act, ot o committee o Je 17, 2009.

The bi cotais a 15% RES b 2020, ad aows or 4% o the

stadard to be met throgh eerg eciec improvemets.

The Seate ma cosider cosider egisatio this ear thaticdes a RES.

Feeral climate change legislation. Cogress ma cosider

egisatio i the oreseeabe tre that wod estabish a

ceiig, or cap, o carbo dioxide (CO2) emissios aowed o

a ecoom-wide basis. Reewabe eerg sstems ie sma

wid trbies, which emit o CO2, cod become more cost-

competitive der this aw.

I order or a etit to emit greehose gases withi the cap,

it wod have to acqire potio aowaces, either or ree

or throgh actio rom the edera govermet (depedig

o the strctre o the egisatio). Etities that receive

aowaces, bt do ot eed them to oset their emissios

becase the prodce itte or o CO2, wod the be aowed

to se their aowaces to others that do eed them. This

sstem is ow as “cap-ad-trade.”

Depedig o whether the egisatio is passed, ad i what

orm, distribted reewabe eerg geeratio techoogies

ie sma wid sstems cod beet direct ad idirect.

I theor, edera actio proceeds cod be sed to d

cosmer icetive programs, ad states ad tiities

cod receive icetives i the adopt poicies that spport

distribted reewabes.

AWEA is active advocatig or cimate chage egisatio ad

worig to see that it icdes provisios to hep sma wid.

For more iormatio see www.awea.org/egisative .




Price ranges for small wind turbines – and even for a single model

– vary widely due to the numerous factors affecting installation,

but costs for a well-sited22 turbine tend to gravitate between $3 – 6

per Watt, and $0.15 – $0.20 per kilowatt-hour. Costs and cost-

recoupment periods can vary due to the following factors, ranked

in approximate order of importance:

Avaiabiit ad qait o state icetives ad state/tiit

et meterig poicies

Average aa wid speed

Prevaiig costs o traditioa eectricit. Istaatios ted to

be most cost-eective i regios where the cost o tiit-provided eectricit exceeds $0.10 per Wh.

Cost o eqipmet, istaatio, ad maiteace.

Estimated operatios ad maiteace (O&M) costs

average $0.01 – $0.05 per Wh. Other cacatio methods

pace O&M costs at rogh 1% o the retai cost o a

istaatio, accred aa.23

Saes ad propert tax rates (ad icetives)

Raw maactrig materias

Israce

Method o acig

Permittig costs, which ca rage rom $0 to $1,000+

depedig o the zoig jrisdictio

Appicatio tpe. Istaatios or bsiesses ma beet

rom specia tax icetives.

A sige residetia-scae trbie dispaces the carbo dioxide

(CO2) prodced b 1.5 average cars. The 100 MW o cmative

sma-wid istaed capacit i the uS trasates to:24

17,000 cars removed rom the road

12,000 eqivaet mber o homes powered

101,000 tos o CO2

dispaced per ear

I 2009, 187 its were reported sod or se i rba/rootop

settigs i the u.S., represetig 400 W o istaed capacit

ad ess tha 2% o the u.S. maret.

At east 17 compaies wordwide maactre or pa to

maactre bidig-moted modes, a high proportio owhich are o vertica-axis cogratio.

Geera, bidig-moted istaatios ace chaegig

perormace obstaces de mai to the trbet ad

predictabe atre o wids arod bidigs ad other

strctres. A trbie istaed i a ocatio or maer

that imits its access to the wid resorce wi reder its

perormace (i.e., otpt, measred i iowatt-hors) beow

that o a trbie istaed i a area where there is a robst,

cosistet wid resorce. A sma mber o compaies are

worig to address the dict o sitig bidig-moted

trbies b sig sotware ad other compter modes topredict wid resorces more accrate i these eviromets.

To date, however, sitig ad perormace chaeges have

severe imited the size ad potetia o the maret or

bidig-moted trbies.25

CostsDispacedCarbo Dioxide

Bidig-MotedTrbies




nie ew sma-wid prodctio aciities were opeed or

expaded i the u.S. i 2009, represetig oe-qarter o a

sch aciities i the wid eerg idstr.

Severa sma start-p maactrers arrowed their prodcties i recet ears whie maig their prodcts more adaptabe

to dieret marets (sch as b eabig them to service both

o- ad o-grid appicatios). Few eadig maactrers

ow oer more tha three or or dieret modes ad istead

ocs o caterig to arrower maret iches.

This tred ma be a rest o the ecoomic recessio ad a

maret ow occpied b at east 250 dieret maactrers

vig or maret share.

Maactrer Proe Approximate 250 compaies i the word maactre,

or pa to maactre, sma wid trbies. O these:

95 (36%) are based i the uited States

At east 47 (12 u.S.) have beg to se commercia

99% have ewer tha 100 empoees

The mber o idetied maactrers i the u.S. icreased

rom 66 to 95 ast ear, ad 26 cotries are ow home to

more tha 250 maactrers. The vast majorit are i start-p

phases ad rogh ha the word maret share is hed b

ewer tha 10 u.S. maactrers.

Maactrig

0 2 4 6 8 10 12

Components

Small Turbines

Towers

Turbines

Drive Train

Blades

Materials

R&D

Fig. 7: 2009 NEW OR ExPANdEd FACILITIES By COMPONENT

Compan CountrkW Sol

Worlwie

Sothwest Widpower u.S. (AZ) 11,700

norther Power Sstems u.S. (VT) 9,200

Prove Eerg u.k. (Scotad) 3,700

Wid Eerg Sotios netherads 3,700

Berge WidPower Co. u.S. (Ok) 2,100

Table 4. Five Largest Manuacturers in 2009, in kW Sol




Fig. 8: GLOBAL dISTRIBUTION OF IdENTIFIEd MANUFACTURERS

Global distribution o Manuacturers

u.S. (95)

Japa (29)

Caada (24)

u.k. (22)

Chia (19)

Germa (16)

netherads (6)

Spai (5)

Swede (5)

Soth Arica (4)

Frace (3)

Idia (3)

Taiwa (3)

Fiad (2)

Israe (2)

Ita (2)

Rssia (2)

Argetia (1)

Astraia (1)

Astria (1)

Demar (1)

Ira (1)

kea (1)

Poad (1)

new Zeaad (1)

Switzerad (1)

Tazaia (1)

21+

11–20

1–10

0




Idstr-Wide R&D Priorities

Advaced materias, maactrig techiqes, ad desig

hod some o the es to achievig higher prodctio

vomes ad ower costs. Idivida maactrers’ research

ad deveopmet (R&D) priorities dier, bt as a whoe,

staehoders idetied the oowig idstr-wide R&D eeds:

Efcienc

Blades: Improve eciecies rom approximate

32% to 45% Alternators: Improve eciecies rom 65-80% to 90-92%

Inverters: Iverters oer ess room or improvemet, as

most are aread over 90% eciet. Most are adopted

rom those sed i the soar photovotaic idstr, which

has ocsed heavi o improvig iverter eciecies over

past decades.

design

Cotie to icrease swept area26 to captre more eerg

whie miimizig desig oads. This aso ma icde the

se o ew composite materias ad modig processes.

Redce the mber o compoets i a sstem.

Research reiabiit isses pertaiig to ightig,

corrosio, bearig bricatio, aterator widig

isatio, ad eectroics.

Focs o “desig or maactrig” techiqes.

Redce the overa se o materias, as measred i

pods per Watt.

Miimize the se o movig parts.

Phase ot mechaica rig sstems.

Improve trbie perormace i ow-wid coditios.

Cosider icorporatig techoog rom tiit-scae

trbies sch as gearboxes, mechaica braes,

pwid rotor desigs, active aw cotro, sta rotor-cotro,

ad variabe-pitch bades, ito commercia / ight idstria

-scae (21-100 W) desigs.

Other

Maitai perormace stadards, certicatio,

ad third-part eqipmet testig sites.

Adopt advaced tower materias ad desigs to redce

istaatio time ad cost.

Deveop processes ad toos that ca more accrate

predict a trbie’s eerg prodctio at a give site.

Estabish robst ad we-traied istaer / deaer etwors.

Deveop advaced tower odatios to decrease

istaatio time ad expese.

Wor with the u.S. Departmet o Eerg to deveop

programs to tae ew techoogies to maret ad icrease

pbic awareess o sma wid.

Deveop wireess ad Web-based trbie perormace

moitorig capabiities to miimize the reqec o site

ispectios.

The deveopmet o batteries ad other orms o eectricit

storage is ot a idstr priorit at preset. Maret

mometm is tited heavi toward grid-tied trbies whichessetia se the eectricit grid as a meas o “storage”

ad do ot icorporate or reqire batteries.27




The u.S. coties to comprise approximate ha the goba

maret, which, accordig to a 2010 AWEA srve, grew b at

east 42.5 MW (10%) ad more tha 21,000 its i 2009. u.S.

maactrers prodced 2/3 o this capacit, maitaiig theirhistorica domiat positio i the goba maret.28

Exports accoted or approximate 36% o u.S.

maactrers’ saes, a icrease rom 28% i 2008.

A overwhemig majorit (95%) o its sod i the u.S.

i 2009 were prodced b u.S. maactrers, cotiig

a historica tred.

u.S. state ad govermet poicies, particar icetives,

have beg to catch p with those o other major trbie-

prodcig cotries. Particar with a capped ITC, the

u.S. appears prepared to improve its maret share i thegoba idstr. With improved state ad edera poicies

reated to permittig, et meterig, ad grid itercoectio,

the u.S. cod attract ot o a arger share o the maret,

bt more domestic jobs rom expadig maactrig

aciities. At east two oreig maactrers ited to create

maactrig aciities i the u.S. de to the maret’s growth,

potetia growth, ad the edera ITC.

The Goba Maret

Fig. 10: U.S. MANUFACTURERS’ ExPORTS (kW)Fig. 9: U.S. GLOBAL MARKET SHARE (kW)

0%

20%

40%

60%

80%

100%

20092008200720060

5,000

10,000

15,000

20,000

25,000

30,000

2009200820072006

k W

3,350

7,100

4,300

8,670

5,000

13,000

10,000

17,800

u.S. Maret

Rest o Word

Export

Domestic



Fee-In Taris. A growig goba tred to impemet eed-i

taris (FITs), a tpe o prodctio-based acia icetive or

sma, o-site reewabe geerators, has arge bee abset

rom the u.S. poic area to date.29 A mber o u.S. states30

have itrodced egisatio that wod create a versio o the

FIT, bt most or soar PV techoog. I 2009 the state o

Vermot became the rst u.S. govermeta jrisdictio to

eact a FIT specica or sma wid sstems.

Asia. Ver ew Asia maactrers respoded to the 2010

ad previos AWEA sma wid maret srves, ad as a

rest this std ca report itte abot this area o the maret.

Its potetia is beieved to be arge, particar i Chia,

Japa, ad Idia, bt o qatitative aasis is et avaiabe.

The Unite Kingom an Canaa. Ater the u.S., the u.k.

ad Caada are the argest idetied marets or sma wid.

The Caadia Wid Eerg Associatio ad Reewabeuk

(ormer the British Wid Eerg Associatio) pbish aa

maret reports that icde statistica ad aatica aases

o their respective ad goba marets.

See www.smawideerg.ca/e/SmaWid.htm ad

www.bwea.com/sma/idex.htm .

I 2009 the Caadia Wid Eerg Associatio hired a

-time Sma-Wid Advocate to wor to secre edera ad

provicia icetives or sma wid i Caada. Sma wid

ow has dedicated edera represetatives i the word’s three

argest marets (u.S., u.k, ad Caada).


Table 5. Fee-In Taris

COUNTRIES WITH FEEd-IN TARIFFS

Ageria kea

Astraia Maasia

Astria Mogoia

Caada new Zeaad

Chia The netherads

Czech Repbic Phiippies

Great Britai Portga

Fiad Serbia

Frace Soveia

Germa Soth Arica

Greece Spai

Idia Switzerad

Ira Taiwa

Israe Tre

Iread uraie

Ita uSA

Japa

Sorce: Pa Gipe, www.wid-wors.org/artices/eed_aws.htm



The sma wid ad soar photovotaics (PV) idstries share

ear idetica marets. The aso beet rom – ad are

ssceptibe to – simiar pbic poicies at the oca, state,

ad edera eves.

The soar PV idstr is sigicat arger ad more matre

tha sma wid, ad coseqet ca be aazed more

easi i macroecoomic cotexts. The sma wid idstr

toda, comparative, is sma eogh that its growth treds

are more a actor o the maagemet, capitaizatio, ad

operatios o idivida compaies rather tha o macro-

ecoomic fctatios i commodities prices, abor spp, etc.

This dierece oers sma wid idstr members to “oo

ahead” i their ow marets to some degree b aazig the

soar idstr toda. To hep achieve this goa, beow is a

overview o the soar PV maret stats ad its treds.

Growth. The soar PV idstr grew 38% ad istaed 429

MW o grid-tied capacit i the u.S. i 2009, o which 156 MW

was istaed or residetia ses ad 207 MW or commercia

appicatios. Icded i this tota growth is the share istaed

b tiities, which is a maret segmet ew eabed b

chages to the edera ITC.31

SMAll WInD TuRBInE GlOBAl MARkET STuDy: 2009 | 23

Soar Photovotaics

Fig.11: GRId-TIEd PV CAPACITy AddITIONS (U.S.)

Sorce: SEIA, IREC

M e g a w a t t s ( M W )

0

100

200

300

400

500

‘09‘08‘07‘06‘05‘04‘03‘02‘01‘00

utiit

no-residetia

Residetia



I 2009 ew sma wid capacit was comparabe to that o

the soar PV idstr i 2000.

The Soar Eerg Idstries Associatio predicts a 100%

growth i the PV maret i 2010.32 However, with a recordamot o overspp, imited credit marets, ad the

exhastio o the geeros Spaish eed-i tari icetive i

2009, some aasts expect a goba decrease i saes vome

o 30% or more.33

Policies. A 30% edera ITC is avaiabe to cosmers o

residetia ad commercia PV sstems throgh December 31,

2016, as is ow avaiabe or sma wid. The soar versio o the

credit, however, or the rst time aows tiities to tae advatage

o the credit. This provisio thereore opes the PV maret to

tiities, which cotribted 66 MW (15%) o the idstr’s growth

i 2009. Soar sstems accoted or 13% o a ew tiit

aocemets ad igs ast ear, p rom 6% i 2008. 34

The soar, sma-wid, ad arge-scae wid idstries are

ooig or eactmet or expasio o simiar edera poicies,

icdig, amog other items, a strog edera reewabe

eectricit stadard, a price o carbo dioxide, a extesio

o the Sectio 1603 Treasr grat program that providesgrats to commercia cosmers i ie o a ITC, ad a

extesio o a ITC avaiabe specica to hep eqipmet

maactrers expad operatios.

General trens. Amidst its growth, the goba soar idstr

experieced a sigicat shaeot ast ear. Goba demad

reached record eves i 2008 ad cased eqipmet

providers to pace arge spp bacorders ad expad

aciities rapid to accommodate cosmer iterest. The,

i 2009, goba demad or soar sowed, arge de to the

ecoomic recessio ad a exhastio o Spai’s geeros

eed-i tari icetive. This dive i demad et a major spp

srps i the maret ad a overcapacit i prodctio

aciities. Prices e accordig, bt ma maactrers

were abe to ower their costs at the same pace ad remai


Fig. 12: U.S. SOLAR PV GROWTH

0

100

200

300

400

500

200920082007200620052004200320022001


Fig. 13: NEW SMALL WINd VS. NEW SOLAR PV (U.S.)

PV data sorce: larr Sherwood; SEIA Sorce: SEIA, IREC


0

100

200

300

400

500

200920082007200620052004200320022001

O-Grid

O-Grid

Soar PV

Sma Wid



protabe. Compaies’ stoc prices e, which heped eabe

a srge i mergers ad acqisitios. Particar ssceptibe

to acqisitio were ew maactrers ad those isciet

speciaized or ivested i soar prodctio. As a rest, as i

the sma-wid idstr, PV growth i 2009 came primari rom

we-estabished maactrers.35

Whie recet spp srges have hrt the soar idstr,

higher prodctio vomes – eabed b the ITC ad extera

ivestmet i maactrig – have heped sma wid

sppiers ower prices ad meet demad.

Other treds emergig i the soar PV sector icde a rise

i Power Prchase Agreemets (PPAs)36 as a project ace

mechaism, ad more vertica itegrated approaches to

prodctio ad distribtio.37

Costs an esign. Sma wid sstems geera have a

greater potetia or cost redctios tha PV eqipmet, bt

rootop PV istaatios have become more streamied over

past ears – what was oce a 20-30 hor tas ow reqires a

average o o 5-6 hors.38 Faig PV costs are aso pressrig

sma wid trbies to perorm more competitive o the bases

o istaed cost ad price per iowatt-hor geerated.

I 2008, PV maactrers geera ocsed o redcig

costs, as the techoog had become arge commoditized.

Toda, ma maactrers are ooig or ew was to

dieretiate their techoogies or compa brads.

Sma wid sstems have ot et reached a stage o

commoditizatio, thogh 99% o a sma wid trbies sod

i 2009 – ad throghot the idstr’s histor – have bee

o a sige geera cogratio (horizota axis, moted

o a tower). Saes ad maret share data strog idicate

the prevaece o a domiat desig, perhaps read to

approach commoditizatio, et more tha 250 maactrers

wordwide prodce (or pa to prodce) a estimated

600 dieret modes, some icorporatig vast dieret

techoogica approaches.

deman. Demad drivers or soar PV eqipmet are

simiar to those or sma wid trbies ( see “Demand

drivers,” page 6), as are maret obstaces ( see “Market

Factors and Developments,” page 9). Both idstries

ace chaeges i edcatig potetia cosmers ad

combatig ase iormatio. The 2009 gide, “Smart Soar

Maretig Strategies,” pbished b Cea Eerg Grop ad

SmartPower, is oe resorce that ideties soar maretig

tactics that ma aso be appied to sma wid techoogies.39


Fig. 14: AVERAGE PV INSTALLEd COST

Sorce: SEIA, IREC

$5.50

$6.00

$6.50

$7.00

$7.50

$8.50

$9.00

$8.00

200920082007

$ / W

0-5 W

5-10 W

10-25 W

25-50 W

50-100 W

100-100000 kW

Tota



Overa, the idstr appears to be headig or sstaied

growth; the qestio is at what rate. I treds i ivestmet

ad poic spport cotie, the u.S. ma ver we reach

the idstr’s projectio o istaig more tha 1 GW o

cmative capacit b 2015.

The sma wid idstr is expadig qic bt remais

sciet sma so that the sccess o a give compa is

more depedet o its prodcts, maagers, ad capitaizatio

tha o goba or atioa treds. For exampe, drig the

ecoomic recessio, maactrers servig idetica marets

reported wide varig otcomes: growth, pateas, or eve

barptcies. The recessio has cased some compaies

to recosider which marets to prse ad, at east ti

the ecoom recovers, to target specic iches rather tha

attempt broader maretig approaches.

u.S. maret share is sti cocetrated i the hads o ewer

tha 10 o 95 idetied u.S. maactrers, bt that ma

chage as competitio grows more matre, widespread, ad

itese. A geera matratio o the idstr, characterized

b icreases i private extera ivestmet, state ad edera

icetives, mergers ad acqisitios, certicatio, ad a host

o other actors, wi ie cotie to chage the damic o

the maret ad the idstr over the ext 5 to 10 ears.

A saes data reported i this std were obtaied direct rom

maactrers throgh teephoe iterviews, e-mai cotact,

or both. Resposes were compared to previos ears’ saes

as reported i 2007, 2008, ad 2009 srves. For prposes

o estimatig istaed capacit, this std assmes that each

trbie sod was aso istaed, ad that the istaatio occrred

withi the same caedar ear as the sae. However, depedig

o the maactrer’s saes cce, a trbie’s istaatio ma

occr ater the caedar ear i which it is sod.

Saes i doar amots are based o average tre

istaed sstem cost, which icdes eqipmet, wirig, ad

istaatio. The prpose o this cacatio method is to refect

the ecoomic impact o the idstr more compete tha b

cosiderig o the cost o the trbie ad tower, istaed.

The cost or a give istaatio ca var cosiderab give a

mber o actors ( see “Costs,” page 17).

This study makes no extrapolations or assumptions on

sales by manuacturers who did not report. Sales gures

in this report thereore refect a minimum amount.


Cocsioad Otoo

Methodology andReporting Manufacturers



A 253 idetied word sma wid trbie maactrers were

soicited or the 2009 AWEA sma wid maactrig srve.

O these, 40 respoded ad 30 had commeced prodctio

ad sod at east oe it commercia b the ed o 2009.

Many, if not most, of these manufacturers are in start-up phases.


Table 6. Responents to the 2009 AWEA Small-Win Manuacturer Surve

Fig. 15: IdENTIFIEd MANUFACTURERS

Identied Mrs:

253 (95 US)

Reporting

Mrs: 40

(21 US)

Have

Begun

Sales:

30 (12 US)

unknown

Manuacturer Primar Location

Abdat Reewabe Eerg u.S. – OR

AeroViromet u.S. – CA

AEarth Reewabes u.S. – VT

Berge WidPower u.S. – Ok

Caioria Wid Sstems u.S. – CA

Dastrosi laboratories u.S. – ky

DoCore u.S. – CA

Edrace Wid Power, Ic. u.S. – uT

Everair Eterprises u.S. – Fl

Heix Wid u.S. – CA

Highest Wid, llC u.S. – nH

norther Power Sstems u.S. – VT

Sothwest Widpower u.S. – AZ

TechoSpi u.S. – ny / Israeurba Gree Eerg u.S. – ny

Vetera u.S. – Mn

Vird Techoogies, Ic. u.S. – CA

Wid Eage Corp u.S. – TX

Wid Eectric Compa u.S. – CA

Wid Trbie Idstries Corp. u.S. – Mn

Manuacturer Primar Location

Wid-Sai u.S. – CA

Widatio Eerg Sstems u.S. – CA

Eotec Frace

Evace u.k.

Gaia-Wid u.k. – Scotad

Gazee Wid Trbies u.k.

Prove Eerg u.k.

Ampair u.k.

FtrEerg u.k.

Wideco Spai

MaMaa Caada

CeaFied Eerg Caada

Etegrit Wid Sstems Caada

REDrive, Ic. CaadaRam Eerg Caada

Wid Simpicit Caada

Fortis netherads

Wid Eerg Sotios Caada/netherads

uitro Idia

WiPower Chia



American Win Energ Association (AWEA)

Sma Wid Homepage www.awea.org/smawid

Additioa Resorces www.awea.org/smawid/toobox2/

additioa_resorces.htm

AWEA Small Win Turbine Global Market Stuies

2009

2008

2007

2007 Data Amedmet

2005

u.S. Sma Wid Trbie Idstr Roadmap

State Polic Inormation

“Poicies to Promote Sma Wid Trbies: A Me or State

ad loca Govermets.” America Wid Eerg Associatio

2008. www.awea.org/smawid/pd/Poicies_to_Promote_

Sma_Wid_Trbies.pd

Database or State Icetives or Reewabes & Eciec

http://dsiresa.org.

Boiger, Edwards, Forsth, ad Wiser. “Evaatig State

Marets or Residetia Wid Sstems: Rests rom a

Ecoomic ad Poic Aasis Too.” Evirometa Eerg

Techoogies Divisio ad natioa Reewabe Eerg

laborator. December 2004. http://eetd.b.gov/EA/EMP.

Solar Photovoltaic Inustr Inormation

Soar Bzz Web site www.soarbzz.com

Soar Eerg Idstries Associatio (SEIA) www.seia.org

America Soar Eerg Societ (ASES) www.ases.org

Gae Barbose, Cara Peterma, ad Ra Wiser. “Tracig

the S: The Istaed Cost o Photovotaics i the u.S. rom

1998–2007.” http://eetd.b.gov/ea/emp/reports/b-1516e.pd

“u.S Soar Idstr year i Review 2009.” Promethes Istitte

ad Soar Eerg Idstries Associatio. http://seia.org/

gaeries/deat-e/2009%20Soar%20Idstr%20year%20

i%20Review.pd.

Win Resource Maps

u.S. Departmet o Eerg / Eerg Eciec ad

Reewabe Eerg

www.eere.eerg.gov/widadhdro/widpowerigamerica/

wid_maps.asp.

u.S. Departmet o Eerg / Eerg Eciec ad

Reewabe Eerg / Reewabe Resorce Data Ceter

http://rredc.re.gov/wid/pbs/atas/maps.htm.

Urban Win Resource Assessment

Cace, et a. “urba Wid Trbies: Gideies or Sma Wid

Trbies i the Bit Eviromet.” Iteiget Eerg, Erope.

Febrar 2007. www.rbawid.org/pd/SMAll_WInD_

TuRBInES_GuIDE_a.pd

Ecrat. “Warwic Wid Trias Project.” u.k., 2009.

www.warwicwidtrias.org.

R Phiips, P Bacmore, J Aderso, M Cit, A Agio-Ra

ad S Pester. “Micro-Wid Trbies i urba Eviromets:

A Assessmet.” BRE, nov 30, 2007.

www.brebooshop.com/detais.jsp?id=287572 .

“Cit ad Cot o Sa Fracisco Wid Resorce

Assessmet Project.” Caioria Eerg Commissio,

Pbicatio nmber: 500-04-066 October 2004.

www.eerg.ca.gov/reports/2004-10-13_500-04-066.pd .

“urba Wid Resorce Assessmet i the uk.”IT Power ITP/0875, Febrar 2007.

www.rba-wid.org/pd/Reports_

urbaWidResorceAssessmet_uk.pd.


Bibiograph adOther Resorces

http://www.awea.org/smallwind/toolbox2/additional_resources.html



http://www.awea.org/smallwind/pdf/Policies_to_Promote_Small_Wind_Turbines.pdf



http://seia.org/galleries/default-file/2009%20Solar%20Industry%20Year%20in%20Review.pdf





http://www.windpoweringamerica.gov/wind_maps.asp



http://www.urban-wind.org/pdf/SMALL_WIND_TURBINES_GUIDE_final.pdf




http://www.urban-wind.org/pdf/Reports_UrbanWindResourceAssessment_UK.pdf











Zoning an Permitting

“I the Pbic Iterest: How ad Wh to Permit or Sma

Wid Sstems, A Gide or State ad loca Govermets.”

America Wid Eerg Associatio, 2008.

www.awea.org/smawid/pd/IThePbicIterest.pd

Gree, Jim, ad Sagrio, Mic. Zoig or Distribted Wid

Power: Breaig Dow Barriers. natioa Reewabe Eerg

laborator, Coerece Paper nREl/CP-500-38167.

Agst 2005.

Pitt, Damia. “Taig the Red Tape ot o Gree Power: How

to Overcome Permittig Obstaces to Sma-Scae Distribted

Reewabe Eerg.” networ or new Eerg Choices, 2008.

www.eweergchoices.org/poads/redTape-rep.pd .

America Wid Eerg Associatio

www.awea.org/smawid/toobox2/zoig.htm

www.awea.org/smawid/toobox2/TOOlS/permittig.htm

Net Metering an Gri Interconnection

Haes, Rst, ad Whitaer, Chc. “Coectig to the Grid:

A Gide to Distribted Geeratio Itercoectio Isses.”

5th Ed. Iterstate Reewabe Eerg Coci, north Caroia

Soar Ceter, 2007. www.irecsa.org/eadmi/ser_poad/

CoectDocs/IC_Gide.pd

Cooper, Chris, et a. “Freeig the Grid: How Eective State net

Meterig laws Ca Revotioize u.S. Eerg Poic.” networ

or new Eerg Choices, Report 01-06. november 2006.

www.eweergchoices.org/poads/etMeterig.pd .

“Freeig the Grid: 2009 Editio.” networ or new Eerg

Choices. november 2009. www.eweergchoices.org/

poads/FreeigTheGrid2009.pd


Choices. October 2008. www.eweergchoices.org/poads/

FreeigTheGrid2008_report.pd


Choices, Report 02-07. november 2007.

http://eweergchoices.org/poads/FreeigTheGrid2007_

report.pd.

America Wid Eerg Associatio

www.awea.org/aq/etbde.htm

www.awea.org/smawid/toobox2/tiities.htm

www.awea.org/smawid/toobox2/grid_coectig.htm

Market Inormation

Jeier l.Edwards, Ra Wiser, Mar Boiger, ad Trd

Forsth, “Evaatig state marets or residetia wid

sstems: Rests rom a ecoomic ad poic aasis too”

(December 1, 2004). lawrece Beree natioa laborator.

Paper lBnl-56344.

http://repositories.cdib.org/b/lBnl-56344 .

Forsth, Trd, ad Rhoads-Weaver, Heather.

“Overcomig Techica ad Maret Barriers or Distribted

Wid Appicatios: Reachig the Maistream.” natioa

Reewabe Eerg laborator ad eFormative Optios, llC.

Coerece Paper nREl/CP-500-39858. J 2006.

www.re.gov/docs/06osti/39858.pd .

“The u.S. Sma Wid Trbie Idstr Roadmap.”

America Wid Eerg Associatio. Je 2002.

www.awea.org/smawid/docmets/31958.pd.

U.S. department o Energ (dOE)

Distribted Wid Techoog program

http://www1.eere.eerg.gov/widadhdro/wid_dist_tech.htm


http://www.irecusa.org/fileadmin/user_upload/ConnectDocs/IC_Guide.pdf



http://www.newenergychoices.org/uploads/FreeingTheGrid2009.pdf



http://www.newenergychoices.org/uploads/FreeingTheGrid2008_report.pdf



http://newenergychoices.org/uploads/FreeingTheGrid2007_report.pdf









1 (Istaed/Rated/namepate) Capacit: Tpica measred i Watts or

iowatts (1,000 Watts), “capacit” is a term commo sed to compare sizes

o eectricit geerators o varios tpes, icdig wid trbies. Capacit is

geera cacated, or estimated, b measrig the rate o a trbie’s eectricit

prodctio, i Watts, at a give wid speed. Capacit does ot idicate the

amot o eectricit a trbie prodces over time (measred i iowatt-hors,

or Wh), bt is sometimes sed oose to approximate a trbie’s potetia

prodctio. For more iormatio o sma wid trbie techoog, see

http://www.awea.org/smawid/ .

2 See “Methodoog,” page 26

3 A estimated 75% o these its are 10 W or smaer. The tota mber

o its crret istaed i the u.S. is ie ewer tha 100,000 de to a

determied mber o decommissioed trbies. From 2006-2009 the

percetage o its 10 W ad smaer has icreased to 99% o a its sod,

idicatig that most growth is occrrig i the residetia maret.

4 See, “Istaer ad eqipmet certicatio,” page 9

5 See aso: Michae Vicerma, “Soar: Pabac Aasis ad

Itera Rate o Retr.” Eerg Beti. March 20, 2007. http://www.

eergbeti.et/ode/27490or http://ews-views.reewwiscosi.org/

ode/19326?q=ode%2F19326.

6 This estimated growth is arrived at b srveig the word’s eadig 15

maactrers ad aggregatig each o these compaies’ se-predicted aa

saes or each o the ext ve ears. no aasis or rther specatio has bee

cotribted to this gre.

7 See page 6 o the 2009 AWEA Sma Wid Trbie Goba Maret Std at

www.awea.org/smawid/pd/09_AWEA_Sma_Wid_Goba_Maret_Std.pd

8 For more iormatio o permittig, see “I the Pbic Iterest:

How ad Wh to Permit or Sma Wid Sstems.” AWEA, 2008.

www.awea.org/smawid/pd/ithepbiciterest.pd.

9 For a compete ad crret istig o icetives ad poicies aectig

sma wid ad other reewabes, see the Database or State Icetives or

Reewabes ad Eciec, admiistered b the north Caroia Soar Ceter,

at http://dsiresa.org.

10 The ARRA oered a mber o other icetives or both cosmers ad

prodcers o sma wid sstems. For detais see www.awea.org/egisative/pd/

AWEA_Smmar_ARRA_Provisios_o_Iterest_to_Sma_Wid.pd. See aso

the Database or State Icetives or Reewabes ad Eciec Web site at

http://dsiresa.org.

11 See www.smawidcerticatio.org

12 See www.eergstar.gov

13 See www.abcep.org/certicatio/tre-certicatios/sma-wid

14 CeaTech Grop http://ceatech.com/abot/pressreeases/20090106.cm

ad PricewaterhoseCoopers/natioa Vetre Capita Associatio MoeTree™

Report. Data rom Thomso Reters, “Tota u.S. Ivestmets b year Q1

1995 - Q4 2009” www.vca.org/idex.php?optio=com_docma&tas=doc_

dowoad&gid=543.

15 Jim Gree ad Mic Sagrio, “Zoig or Distribted Wid Power: Breaig

Dow Barriers.” natioa Reewabe Eerg laborator coerece paper nREl/

CP-50038167, www.re.gov/docs/05osti/38167.pd.

16 See http://apps1.eere.eerg.gov/ews/dai.cm/hp_ews_id=166 ad

Topic Area 2C o https://e-ceter.doe.gov/iips/aopor.s/unID/C53C9A2E58F1

25848525753000066191/$e/FInAl_FOA_PMC113_1-FOA-Grats_Gov_with_

M005.pd.

17 Ma actors cotribte to demad other tha cost recover.

See “Demad drivers” o page 6.

18 The ARPA-E is modeed ater the Deese Advaced Research Projects

Agec (DARPA), the agec resposibe or techoogica iovatios sch

as the Iteret ad steath aircrat techoog. The goa o ARPA-E is to d

projects that wi deveop trasormatioa techoogies that redce America’s

depedece o oreig eerg imports, redce u.S. eerg reated emissios

(icdig greehose gasses), improve eerg eciec across the ecoom,

ad esre that the u.S. maitais its eadership i deveopig ad depoig

advaced eerg techoogies. See a ist o ded projects at http://arpa-e.

eerg.gov/FdedProjects.aspx.

19 Eerg Iormatio Admiistratio

20 Other beets icde: a xed cost o eectricit or the 20+ ear ie o the

trbie, redced pea eectricit demad, secrit agaist e price icreases

ad voatiit, redced pressre o the eectricit grid, icreased i-state

geeratio, greater maret competitio rom icreased cosmer choice,

ad improved oca sma-bsiess ecoomies.

21 For more iormatio i et meterig ad itercoectio, see the

“Freeig the Grid” pbicatios b the networ or new Eerg Choices at

www.eweergchoices.org.


Edotes

http://www.energybulletin.net/node/27490





http://news-views.renewwisconsin.org/node/19326?q=node%2F19326



http://www.awea.org/legislative/pdf/AWEA_Summary_ARRA_Provisions_of_Interest_to_Small_Wind.pdf




http://www.nvca.org/index.php?option=com_docman&task=doc_download&gid=543




https://e-center.doe.gov/iips/faopor.nsf/UNID/C53C9A2E58F125848525753000066191/$file/FINAL_FOA_PMC113_1-FOA-Grants_Gov_with_M005.pdf





http://arpa-e.energy.gov/FundedProjects.aspx












22 Geera, trbies istaed at a site with access to average wid speeds

o at east 12 mph at hb height.

23 See: Sagrio, Mic, “Wid Sstem Operatio ad Maiteace Costs.”

Factsheet rom AWEA Widetter, December 2002 http://reewwiscosi.org/

wid/Toobox-homeowers/Operatio%20ad%20maiteace%20costs.pd.

24 A we-sited 10 W trbie geerates abot 1,090 Wh/moth i 12 mph

average wids. I the trbie’s expected ietime o 20 ears it ca dispace

approximate 340,000 bs. o CO2. Each iowatt-hor (Wh) o eectricit

prodced i the u.S. rests i 1.55 bs. o CO2

emitted ito the atmosphere,

o average, refectig the crret uS eectricit prodctio mix. Sorce: u.S.

Departmet o Eerg. The u.S. Evirometa Protectio Agec estimated

i 2000 that the average passeger car emits 11,450 bs. o CO2

per ear.

Average aa home eerg se i the u.S. is 10,565 Wh.

25 See the Bibiograph or more iormatio o rba/rootop istaatios.

Reewabeuk (ormer the British Wid Eerg Associatio) aso tracs

the mber o bidig-moted sma wid sstems istaed i the uited

kigdom i its aa sma wid sstems maret report.

See www.bwea.com/sma/idex.htm.

26 “Swept area” is the srace area o a trbie rotor, A = π•r2,

where r is the radis o the rotor (i.e., the egth o oe bade).

27 For more iormatio abot grid itercoectio, see

www.awea.org/smawid/toobox2/grid_coectig.htm.

28 This estimatio o the u.S. goba maret share ma be somewhat ifated

becase o 19 o 158 idetied oreig maactrers respoded to the AWEA

maret srve. However, these 19 maactrers are beieved to represet the

b o the oreig maret. Codece i maret share treds over the past three

ears is reative high becase geera the same maactrers respod to

the AWEA srve. See aso, “Methodoog,” page 26.

29 A FIT or sma, distribted geeratio is a icetive poic that wors

simiar to the reverse o a Reewabe Eectricit Stadard i that it estabishes

a set price at which a tiit prchases eectricit rom a reewabe geerator,

sch as a sma wid sstem, ad aows maret orces to adjst the amot

o eerg prodced (spp) ad demad accordig. uie p-rot rebates

ad tax credits, this poic is based o otpt (cets/Wh) rather tha trbie

size (W), ad thereore rewards perormace. uie et meterig, a eectricit

geerated – ot jst the excess – is set ito the grid ad awarded pamet

rom the tiit at a price above regar retai eectricit rates.

30 See www.wid-wors.org/Feedlaws/uSA/uSAlist.htm#uSA

31 “u.S Soar Idstr year i Review 2009,” Soar Eerg Idstries

Associatio. Apri 15, 2010. http://seia.org/gaeries/deat-e/2009%20

Soar%20Idstr%20year%20i%20Review.pd .

32 Rhoe Resch, SEIA Presidet, i a iterview with E&E TV.

www.eeews.et/tv/video_gide/1150. Posted o Apri 15, 2010.

33 Paa Mits, “The PV Idstr 2009: I Search o Stabiit ad Sstaiabiit”

http://www.reewabeeergword.com/rea/ews/artice/2009/08/the-pv-idstr-

2009-i-search-o-stabiit-ad-sstaiabiit1?cmpid=Wnl-Wedesda-

September2-2009. navigat Costig, Agst 31, 2009.

34 Eisa Wood, “uS Soar Spis a 360.” Ediso Eectric Istitte ad

ReewabeEergWord.com,www.reewabeeergword.com/rea/ews/

artice/2009/12/s-soar-spis-a-360. December 8, 2009.

35 nathaia Groewod, “Brighter Das See or Soar, next-Ge Bioes.”

E&E, Je 9, 2009. nathaia Groewod, “Word Soar Idstr Appears

Headed or a Shaeot.” E&E, Agst 12, 2009. Jeier kho,

“How PV Maactrers Are Drivig Dow Costs.” E&E, J 31, 2009.

36 A PPA is cotract betwee a cosmer ad a compa that ows ad

operates a eerg geerator. The PPA estabishes a price ad time period or

which the geerator ower/operator wi se eectricit to the cosmer. This

arragemet provides the cosmer a predictabe, assred eectricit price over

a exteded period o time; reedom rom riss ad resposibiities associated

with eqipmet owership; ad the abiit to se reewabe eerg withot

a arge p-rot capita ivestmet. The PPA provides the geerator ower/

operator predictabe cash fow o their ivestmet ad certai tax advatages.

37 Jim Motgomer, “Five Predictios or PV Soar.” Photovotaics Word,

Jaar 12, 2010.

38 Eisa Wood, “uS Soar Spis a 360.” http://www.reewabeeergword.com/

rea/ews/artice/2009/12/s-soar-spis-a-360, December 8, 2009.

39 “Smart Soar Maretig Strategies,” Cea Eerg Grop ad SmartPower.

www.ceaegrop.org/Reports/CEG_Soar_Maretig_Report_Agst2009.pd


http://renewwisconsin.org/wind/Toolbox-Homeowners/Operation%20and%20maintenance%20costs.pdf








http://www.renewableenergyworld.com/rea/news/article/2009/12/us-solar-spins-a-360














Ron Stimmel I Manager, Legislative Affairs and Small Systems

2010 awea small wind turbine global market study

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