Emerging Renewables Program Small Wind Incentives Study

Publication Number:    CEC-300-2009-003

Abstract:

Since the inception of the Energy Commission’s Emerging Renewables Program in 1998, California has seen significant fluctuation in the number of small wind systems installed annually, including a steady decline in rebate applications since 2006. Over this period, many factors have influenced the demand for small wind systems, such as: a maturing infrastructure for installers and manufacturers, increasing public exposure to small wind and renewables systems, changing system costs, and varying incentives. In 2009, KEMA analyzed data collected from the Emerging Renewables Program project database and through participant and installer surveys. The analysis included investigation of California’s small wind market infrastructure, system performance, trends in size and capacity, annual installation quantities, system costs and payback, and satisfaction. KEMA identified barriers to small wind – from the perspectives of both the owners and the installers. From this analysis, KEMA recommends that the Energy Commission maintains its current incentive level while encouraging customers to take advantage of the recently uncapped federal Investment Tax Credit. In addition, the Energy Commission should revise its certification process to require more comprehensive safety, quality, and performance certification of wind turbines and to simplify certification of inverters. Inverters convert direct current into standard household alternating current power. They are also known as DC to AC converters. To eventually increase small wind performance, the Emerging Renewables Program should develop a production estimation tool and engage in educating and training system installers in proper planning and siting. In conjunction with the tool, the Emerging Renewables Program should work to improve the accuracy and applicability of state wind maps for small wind systems. Lastly, the Emerging Renewables Program should consider increased public outreach and education efforts to promote familiarity and acceptance of small wind systems.

Keywords: Small wind, renewable energy, distributed generation, small wind and photovoltaics comparison, market barriers, rebate analysis, emerging technology, state incentive program, California Energy Commission, Emerging Renewables Program, ERP, Self-Generation Incentive Program, SGIP, program evaluation, wind turbine, turbine certification, permitting, property tax, inverter certification, payback analysis, production estimation tool, wind map, renewable energy economics, consumer education, customer satisfaction

Author(s):  Nellie Tong, Peter McPhee, Pete Baumstark, Andy Bridges, Mark Bolinger

Commission Division:    Renewables Program (300)

Office/Program:    Emerging Renewables Program

PIER Program Area:   

Date Report Completed:    July 2009

Date On Line:    07/09/2009

Acrobat PDF File Size: 109 pages, 884 kilobytes