by Dan Blewett
How much does a wind turbine cost in 2024? As these green energy machines are getting larger and more efficient, it’s no secret that they are still expensive, energy-producing machines.
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Header image credit: GE Vernova
In this article, we dive into the numbers you need to know to understand how much does a wind turbine cost, do they actually pay for themselves over time, and is the tremendous upfront investment worth it? Over the past several years, development for offshore wind farms has accelerated, thanks to the Biden Administration’s championing of wind power in the United States. All over the world, offshore is becoming a more and more viable source of energy – yet cost estimates for off-shore wind are more difficult to pin down than onshore wind.
Calculating the cost of a wind turbine in 2024 is more math problem than you might think. No off-the-shelf solutions exist, but in 2024, there are hints that manufacturers may reduce the models they offer for some very good reasons: profitability, and engineering reliability. If you’re not familiar with the wind energy market, it helps to start with a bit of an industry overview to understand how wind turbine costs are determined.
Are Wind Energy costs going down? Is Wind Energy Getting Too Cheap?
In recent years, wind turbine manufacturers like Siemens have expressed concerns that the cost of wind energy is getting too low to maintain the development and growth of the market. Rising costs, and government pricing structures present constant challenges to manufacturers.
In 2022, Nordex raised its turbine prices (approximately 12%) due to cost increases and rising interest rates; other turbine manufacturers increased prices as well. In 2023, wind turbine prices were more steady. Midway through the year, Nordex, based in Germany, recorded an average selling price of €890,000/MW or about $965,000/MW USD. [1]
In May 2023, Siemens’ Tim Dawidowsky famously commented, “it’s all about cash.” Obviously, Dawidowsky wanted to see European turbine makers get more money – and he’s not alone. When we reported on Dawidowsky’ s comment in an Uptime Podcast episode, we explained it in context with other concerns about energy pricing strategies. Nothing happens in a vacuum, and wind energy costs – including almost every piece of hardware in a wind turbine – are affected by myriad global factors more than most industrial products .
Of those factors, energy costs are the most difficult to pin down. Because different countries finance energy in vastly different ways, the industry absolutely does not enjoy a level playing field. While many European countries control energy developments outright – and other countries, like the US, has a long history of incentives and subsidy programs – it is difficult to determine actual costs, true profits and losses, and almost impossible to compare energy costs between nations. Even ‘simple’, hard costs – like blade and nacelle structures – fluctuate due to political policies and how they are expected to influence future prices.
The Biden administration’s IRA (Inflation Reduction Act) has committed billions to green energy incentives. For weekly discussions on wind industry business and technology, listen to the Uptime Wind Energy Podcast here.
How Much Does a Wind Turbine Cost Initially?
For commercial wind turbines, the answer is millions of dollars per turbine.
Wind turbines cost a lot, and as such the investment is to be recouped over a long period of time.
Turbines produce significant electricity and sell it back to local power utilities where it flows to the power grid, to be used by homes and businesses.
The Breakdown of Initial Wind Turbine Costs
- $2.6 – $4 million per average-sized commercial wind turbine
- Typical cost is $1.3 million per megawatt (MW) of electricity-producing capacity
- Most commercial wind turbines have a capacity of 2-3 MW, but offshore turbines can be as large as 16-18 MW
- Cost increases as turbine size increases, though there are benefits to using fewer, larger turbines – complexity and construction of the overall farm site is greatly reduced with fewer and larger turbines.
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Costs vary widely around the world. Why? It’s complicated
From Australia to Brazil to Canada to the UK, energy project are developed (read: funded and subsidized) in vastly different ways, largely due to different forms of governments. But there are many other stickier issues that make determining the cost of a wind turbine more difficult than your average accounting problem.
Different countries “adjust” the cost of materials, labor and land though artificially (or actually) reducing wages, and adding tariffs and taxes. In the US, well-intentioned initiatives like the Jones Act can increase the initial cost of wind turbine manufacturing – but in the long term, they should increase the value of the country’s wind energy market. The US isn’t the only country that creates such political constraints. Since 2022, throughout 2023, 2024 and well into 2025, the Jones Act is significantly impacting offshore wind turbine costs. In this August 2024 episode, we detailed some of Orsted’s financial troubles. (Orsted is based in Denmark.) For more information on the business side of wind turbine costs and overall industry growth, listen to the Uptime Wind Energy Podcast every week. It’s eye-opening!
Wind Turbine Maintenance Costs
Once built, maintenance is an ongoing expense.
- 1-2 cents per kilowatt-hour produced, or
- $42,000 – $48,000 per year
Operation and maintenance costs can be significant, but all of these machines are long-term investments continue to (hopefully) pay for themselves over time.
A wind turbine study using German data showed that these costs can be 1-2 Eurocents per kilowatt hour (kWh) produced, on average.
A 2017 article suggested that typical O&M cost were $42,000 – $48,000 per year in the United States, but the article also explained that some costs were decreasing as technology improves. While policies have shifted (worldwide) in the following years, the article still offers a decent overview of wind turbine costs.
This number climbs as the the turbine ages, which is not surprising considering the wear and tear and harsh environments these machines operate in.
How Operation & Maintenance Requirements Impact Wind Turbine Cost
Operation & maintenance (O&M) typically includes the following:
- Insurance
- Land costs, rent and taxes
- Service, repair and spare parts
- Administrative tasks
- Power (it does take some electricity to run)
- Miscellaneous
These recurring costs are not too significant, and the turbine will significantly outproduce the maintenance costs.
Repairs can be a significant capacity reducer (more on this later), and lightning strikes on wind turbines can be a real problem.
Though turbine blades leave the factor with a lightning protection system, often they are inadequate.
Especially for offshore wind turbines–where transporting workers for repair is costly and time-consuming–additional layers of lightning protection is important.
Products like segmented lightning diverters can provide additional protection from lightning strike damage to wind turbines.
How Much Electricity Does a Wind Turbine Produce?
We’ve covered costs, so now lets turn to the big question: how much electricity does a wind turbine generate?
Wind turbines are sized in megawatts (MW), which refers to their capacity to create electricity.
One megawatt = 1,000,000 watts of power. One megawatt can power about 1000 homes for a month but in reality, wind turbines don’t come close to producing their rated capacity because of changing wind speeds.
Size of the Wind Turbine Affects Electricity-Producing Capacity
Wind turbines cost more the bigger they get, but they produce more electricity with larger nacelles and turbine blades.
In its latest report on average rotor diameter size, Statistica said rotors for onshore wind turbines had risen to 129 meters (423 feet).
Common commercial wind turbine sizes in megawatts:
- 1.5 MW (onshore, or land-based)
- 2.5 MW (onshore)
- 4 MW (onshore)
- 6-8 MW (offshore)
- Up to 15 MW (GE Haliade-X produces 12 MW and the Siemens Gamesa SG 14-222DD is a 15MW Turbine)
…and they’re getting bigger! see an updated article on wind turbine costs for 2023 here
Offshore wind farms choose larger wind turbines in part because of the high cost of installing them and transporting the electricity, as well as the increased efficiency they gain with consistent, faster wind speeds.
It’s preferable to build one turbine rather than many smaller ones because fewer towers and ground anchoring systems have to be constructed, making everything less complicated.
Wind Speed & Direction Affects “Capacity Factor” in Electric Production
At full wind speed, a turbine can produce at it’s full capacity. If a turbine is rated for 2.5 MW, then at peak wind speed it will crank out 2.5 MW of power.
Yet, we all know that wind is never constant.
Because the wind dies down, changes direction, etc., overall averages will be much lower, usually in the 30-40% range for onshore wind turbines and up to 65% (occasionally higher in rare circumstances) for offshore turbines.
Biggest Wind Turbine: GE Haliade-X 12 MW Turbine
The GE Haliade-X is…insane.
This enormous wind turbine is the first to offer 12 MW capacity, with blades 107m (351 feet) long and an overall footprint that reaches 260m (853 feet) into the sky.
Turbines of this size are typically used offshore, where wind speeds are consistently much higher and delivering power is more complicated. Fewer, bigger turbines = easier power transport, fewer long-distance cables and a simpler overall system.
If you’re curious how these turbines stay upright in the crazy waves and wind out to sea, check out this article featuring some great illustrations.
How Much Money Does a Wind Turbine Produce From Electricity it Generates?
Remember that a wind turbine has a maximum rated capacity (such as 4 megawatts), but it will only produce electricity at a “capacity factor” or “load factor” that is a percentage of this maximum.
In the chart below, you’ll find some numbers based on the typical sale price (2019 data) of electrical power created by wind turbines. This power is sold back to the electrical grid of utility companies, and the price has been falling as turbine technology has improved.
This sale of electricity is how wind turbines pay for themselves and create renewable energy.
We want this power to be cheap, and it’s moving in the right direction.
The goal is for turbines to produce at a higher capacity factor, which means they’re creating more electricity for the time they’re in operation.
Need Lightning Protection For Your Wind Turbine?
Our StrikeTape wind turbine segmented lightning diverters are the most durable, highest-performing product in the world. Wind turbine maintenance costs skyrocket when constantly damaged by lightning strikes, so protect your turbines with the best.
Use StrikeTape lightning protection on your wind farm.
More Wind Turbine Questions & Answers
Check out our common wind turbine questions below, including many about wind turbine cost, specifications and more.
If you have a question, leave it below and we’ll update this article with our answer!
The towers on most commercial wind turbines are in the range of 200-260 feet tall. The blades, often well over 100 feet long, when counted in total height push the number well into the 300s. The Gamesa G87 model wind turbine’s blades reach a height of 399ft.
Wind turbine blade tip speeds regularly range from 120-180 miles per hour, though they vary due to wind conditions. Because of their enormous size (with blades well over 100ft), they look like they’re spinning slowly, when in reality blade tip speeds are very, very fast.
$1,300,000 USD per megawatt. The typical wind turbine is 2-3 MW in power, so most turbines cost in the $2-4 million dollar range. Operation and maintenance runs an additional $42,000-$48,000 per year according to research on wind turbine operational cost. See the National Renewable Energy Laboratory’s website for the most recent (December 2022) Cost of Wind Energy Review.
Yes, and these smaller turbines can now cost less than $1000. Energy production will vary greatly to the size, specs and wind conditions of a person’s home, and some homes may not be suited well for a turbine at all. There’s a reason that wind farms are carefully placed in very wind, often harsh conditions–high winds occur in places people often don’t want to live. If your home doesn’t get consistent, strong wind, it may not make financial sense to install any type of wind turbine. New turbine designs are constantly being proposed and tested.
Unfortunately, they sometimes do, but it’s not the largest threat to the bird population. Cats, and cell phone towers, are far more deadly to the bird population. This article sheds light on the issue: https://www.usatoday.com/story/money/business/2014/09/15/wind-turbines-kill-fewer-birds-than-cell-towers-cats/15683843/.
The number can vary greatly due to factors including size, wind conditions, blade length and of course, average home energy consumption. A typical wind turbine is generally capable of powering 1000-2000 homes in one year. One megawatt of energy production capacity will power about 1000 homes, and many onshore wind turbines have a 2-3 MW capacity.
The capacity factor–or load factor–is the actual power generation over time, rather than the theoretical maximum a turbine could produce. Because wind turbines can’t maintain peak production at all times (not even close) due to changing wind conditions, downtime for service, etc. – it’s important to consider capacity factor when calculating the expected power a turbine can produce over a year or more.
Most recent update May 30, 2024. Original article by Dan Blewett published December 20, 2021. Edited by Dan Blewett and Diane Stresing. The most recent and substantive changes since original publication date are noted below.
[1] (New citation, May 2024 update) https://www.windpowermonthly.com/article/1829900/nordex-sells-16gw-wind-turbines-pricing-holds-steady-q2#
- The largest offshore wind turbines were updated to 18 MW
- The National Renewable Energy Laboratory’s website was added to the frequently asked questions linking to the most recent (December 2022) Cost of Wind Energy Review.
- Statistica’s latest figures on the Global Wind Power Market Statistics and Facts were reviewed. The latest figures available for most stats were based on a report completed 2021, which is available here.
- References to recent podcasts and articles have been added.
- This article may be updated periodically, at which time substantive changes will be noted here.
- This article was updated on September 30, 2024 to include additional complications of breaking down wind turbine costs in various countries due to tariffs, subsidies, and other financial/political differences around the world.
