5 Ways to Get Started in Wind Energy Investment

  • March 15, 2022

Wind energy has gained tremendous momentum throughout the renewable energy industry in the United States and Internationally. Over the past decade, wind power has become the largest source of renewable energy in the USA. As the industry continues to grow, more companies are discovering the benefits of investing in, lending to or purchasing wind power.

There are numerous ways you can get started in wind energy investment, and an investment’s structure and benefits will differ from project to project.

Let’s say you’re investing in a wind project. To understand the main benefit of this investment, you may wonder, “What is the “return on the investment” for a commercial wind project?”

According to the National Renewable Energy Laboratory (NREL), a 2.6-megawatt turbine with a working life of 25 years could bring an investor over $300,000 in just a year. 

Because each project promises different benefits, the best way to plan your investment is to examine various wind projects that are currently available to understand the environmental and economic benefits.

Keep reading to learn more about the benefits of a wind farm investment and where to start investing in wind turbines. 

Benefits of a Wind Farm Investment

The recent uptick in popularity is a clear indication that there must be some form of benefit to a wind farm investment. Truthfully, there are actually more than a few benefits that investing in wind turbines will bring. These include:

  • Wind power is a cost-effective energy source. Since fuel is free, there’s a cost savings for using wind power. In fact, wind power is one of the lowest-cost energy sources available. 
  • Wind turbines allow for domestic growth. In the U.S. alone, wind power capacity has grown by 15% every year for the last 10 years. As this trend continues and the US converts to electric cars we will be transitioning from foreign oil to domestically produced wind power for our transportation fuels. 
  • The job opportunities are endless. More domestic energy production means more job opportunities. The U.S. can lead in wind energy capacity and provide job growth at the same time. By investing in wind power, you’re investing in the US economy. 
  • There’s no need for new land acquisition. Unlike other energy sources, wind turbines can be built on existing farms. There’s no need to acquire new land or complete an extensive construction process to make room for this energy source. 
  • You’ll receive a strong ROI. Last but not least, wind energy has a low risk relative to the return on investment. 

Investing in wind energy or wind projects is an excellent way to boost the US economy and keep energy costs down without negatively impacting the environment. Ready to take the leap? Read on to learn more about how to find wind power. 

How to Start Investing in Wind Turbines

Investing in wind turbines is an easier process than many think. There are three primary steps that you should take to begin your wind farm investments. 

Understand What You’re Investing In

The first step is to truly understand what you’re investing in. This means more than just knowing that wind turbines are a clean source of energy. Investing in wind farms means investing in the economy, the environment, and more. Your investment can make a major impact on the world around you. 

Calculate Potential Returns

It’s natural to want to know your estimated return on investment before you take the leap. Speak with the professionals at AVANA Capital to learn more about wind power and projects and how you can accurately calculate your return on investment for this endeavor. 

Select an Investment Option

The final step is to decide where to start investing. There are a few options you can choose from when beginning your investment journey. We’ve highlighted just a few below. 

Where to Start Investing: Types of Wind Energy Investments & Projects

Distributed Wind Systems

One type of wind energy investment to consider investing in is distributed wind systems. These systems are commonly installed on residential, commercial, industrial, and agricultural sites.

Distributed wind systems vary in size, depending on the project site. For example, a distributed wind system located at a residential home can have a 5-kilowatt turbine. A larger-scale distributed wind system turbine can be located at an industrial site. Regardless, most distributed wind systems are no larger than 20 megawatts.

The main purpose of distributed wind systems is to either meet a site’s load or offset large energy loads near the site. So, a smaller turbine at a house can meet load needs, while a larger turbine can offset a manufacturing facility’s load.

Offshore Wind Projects

Offshore wind projects refer to wind farms that are constructed in bodies of water off the coast of the United States. The Bureau of Ocean Energy Management or BOEM began its renewable energy program in 2009. This program includes offshore wind and other energy projects located on the outer continental shelf.

Typically, offshore wind farms are located close to major coastal load centers. Thanks to this proximity, offshore wind farms provide an energy alternative to land-constrained regions.

The energy provided by these offshore projects is abundant. According to the BOEM, offshore winds “blow harder and more uniformly than on land.” This wind consistency is a major benefit, as it better ensures these projects generate consistent energy once in operation.

Wind Farm Investments

When picturing a wind energy project, you’ll likely envision a wind farm. The American Wind Energy Association defines a wind farm as a “large number of turbines built close together.”

The main difference between one wind farm and another is the turbine size. For example, a utility-scale wind turbine ranges from 100 kilowatts to several megawatts.

The size of a wind farm’s turbines will depend on the project site. So, when siting a project, you’re looking for large, open spaces that can fit numerous wind turbines. With more available space, a wind farm project can easily install multiple utility-scale wind turbines.

Wind Product Manufacturers

Consider a wind farm investment that starts right at the source— with the manufacturers themselves. Though sometimes investing in these companies can be hit or miss, they are incredibly profitable when products take off. If your plan is to invest with manufacturers, you’ll want to make sure you do your research on who has consistently hit the mark with their products. 

Individuals who are newer to the industry or looking for a low-maintenance investment may want to consider other options when investing in wind turbines. 

Exchange-Traded Funds (EFTs)

If you’re not set on one specific company, an exchange-traded fund (EFT) may be the perfect solution. Instead of choosing one sole company to invest in, you’ll have the opportunity to focus your energy on a sector of renewable energy, such as wind turbines. Explore all the available options and select an EFT that best aligns with your investment objectives. 

Let AVANA Capital Elevate Your Investments

Want to learn more about wind energy investment opportunities?

Partner with the expert team at AVANA Capital and gain access to unique industry insights that will help elevate your clean energy investments. Our lending experts are here to help you stay on top of industry trends and grow your investment. Contact us today to learn more about starting your wind farm investment journey!