Investment in wind power — whether by a government, utility or consumer — is a sound strategy if the benefits outweigh the costs. How costs and benefits are evaluated can be different in each case, but usually our primary considerations are financial. So we could say that an investment is wise if it returns more money over its life than an alternative form of investing would have.
Frequently, wind power is such an investment. Though the initial outlay may be large, the money saved each year in energy costs will eventually recoup the initial costs. At that point, each month and year where you don’t pay for an alternate form of energy generation is essentially making you money.
If investments in wind power did not require large initial costs, then we’d see many more examples of it throughout the world. But more and more, consumers and utilities are realizing that a little bit of patience can yield great financial rewards. Plus, with government incentives such as tax breaks and rebates, initial costs can sometimes be substantially reduced, shortening the time before initial costs are recovered.
An investment in wind power is just like any investment in your own personal life — you should invest if you consider the return more valuable than the initial outlay. The drawback to investing in wind power is that it will take years to earn back what you invested. But the benefit is that the risk of your investment is quite low compared to other forms of investing, such as the stock market, and the return at that time can be substantial.
Anne Perkins is a freelance writer focused on how to live large on a little living. She writes financial savings tips for QuickQuid, an online short-term lender providing quick loans to those in need. At her blog, AnnieIdea.com, you can get tips on how to take any idea and make it easier or cheaper to complete.