|
Basic Farm Site
Requirements for Commercial Wind Power
- Minimum
acreage: 20-40 acres
- No
wetlands, minimum of trees at windmill site
- Flat
or open ground exposed to all compass directions
- Preferably
zoned agriculture
- 800
Ft. Minimum to closest residence from windmill
- Distance
between large windmills: 700-1200 Ft.
- Three
Phase electric power lies within one mile
- Substation
within one to three miles for larger projects
- Zoning
and permitting capabilities from local township
Land Lease Option
Typical Utility
Easement Terms for Farmers
- 25-30 years
minimum
- Approximately 2
acres for construction and service
- Top soil returned
to foundation site
- Minimum access
road improvement
- Farming allowed
up to windmill base
- Right to compensation
for damage to crops
- Initial signing
fee: $200-500, fixed, nonrefundable
- $200 -$500 per
windmill per month depending on site quality ($2400 to $6,000 per year)
- Alternative to
fixed payment of 2% to 4% royalty of revenues depending upon price of
electricity sold
- Monthly payments
begin upon construction of windmill
- Underground power
lines below plow depth to edge of property
- Indemnification
to protect both parities
- Personal property
tax paid by windmill owner
- Land taxes paid
by farmer
- Assignability for
both parties
- Insurance
- Wind resource test
period allowed at no additional cost
Ownership Option
- Conditions
for Commercial Windmill Ownership by Farmer
- Good wind site
- Secure Payment
for electricity of 5-8 cents kWh
- Ability to utilize
tax advantages from 5 year accelerated depreciation and tax credit of
1.7 cents/kWh
- Ability to utilize
some power, net metering
- Long-term financing
or cash available
- Return of investment
10% plus as goal
- Cost of windmill:
$1,000+ per installed peak kilowatt
Back
to Smiley Presentation
|