US small turbine market enjoys fair wind

The market for small renewable wind power installations grew by 78 per cent in 2008, according to new figures from the American Wind Energy Association (AWEA) which also suggest that the market could grow 30-fold in the next five years.

The AWEA's annual report on the small wind sector, The Small Wind Turbine Global Market Study, predicts extensive growth over the next few years thanks to a mixture of government incentives, higher energy prices, and the expected introduction of cap-and-trade legislation.

The report said that a tax credit equal to 30 per cent of installed system costs, introduced in 2005, has boosted the commercial market, while an increase in residential tax credits to the same level last October has led to more domestic turbines being installed.

Nevertheless, the report still warned that the sector will continue to face stiff competition from alternative low-carbon technologies.

"Small wind is still in a race with the solar photovoltaic industry toward " grid parity" – price per kilowatt-hour on par with conventional forms of electricity – and now both industries enjoy nearly identical federal incentives for a more level playing field," the report said.

Sales of residential systems – still the most significant in market terms – and upper-commercial systems between 21-100kw – grew the most of all wind projects in 2008.

However, sales dipped by 20 per cent in the closing months of 2008, and the early months of this year, suggesting the onset of recession has had an impact on demand.