1. Developing Wind Energy Projects: Success Stories from the Field Distributed Energy Wind Generators Andy Kruse

2. Southwest Windpower - Who We Are Founded in 1987 15,000+ turbines manufactured annually Over 170,000 turbines shipped and installed worldwide Sales representation in over 88 countries Installations in 120 countries Fully integrated company: R&D, Design, Manufacturing, Sales & Service Flagstaff, Arizona Mfg. Facility Cologne, Germany (Sales and Service) 2

3. What We Do AIR BreezeWhisper 100Skystream 3.7 AIR is a 200-400 watt wind generator. More than 140,000 AIR’s have been produced over the Last 12 years The Whisper line ranges from 900-3000 watts. Whisper’s are installed in more than 100 countries. Over 14,000 Whispers have been produced. Skystream is a 2400 watt inverter based wind turbine. Introduced in 2007, to date, 7500 turbines have been installed throughout all 50 States Battery charging ($600-900 USD) Battery Charging ($2800-7500 USD)Grid Connected ($6500 USD) 3

4. The Process

5. Before a Project Begins Site wind resource Property characteristics Project economics Utility interconnection agreements Local Zoning/permitting

6. The quality of today’swind maps are farbetter than those of afew years ago. Windmaps are used todetermine the potentialresource. Most important: Identifying the Wind Resource Resources: http://www.windpoweringamerica.govhttp://www.windpoweringamerica.gov http://www.3-tier.com 1985 2010

7. Property Considerations Important Factors Appropriate land available Obstacles (building & trees) Terrain Soil conditions X

8. Economics But… The decision to invest in a small wind turbine or solar often is not solely about straight economics.  Economics – Reduce or eliminate monthly electric bill  Control – Being less dependent on the utility  Climate Change – Concerned with environmental issues and wanting to make a statement  National Security – Concerned over the county’s growing dependence on foreign energy 1)Straight Payback 2)ROI as compared to bank interest rates

9. Federal and State Incentives 9 State Incentives: 1)State Tax Deductions 2)Up to a 50% rebate in many States Federal Incentives 1)30% ITC for consumers 2)30% for business as well as depreciation Resources incentive database: www.dsireusa.orgwww.dsireusa.org State and Federal incentives can reduce the cost of a wind system by up to 70%

10. Utility Interconnection  Federal law (PURPA) requires that all utilities allow customer-owned generators to interconnect with the grid  Most states have in place net metering and interconnection agreements  Off-grid systems do not need to notify the utility  The latest interconnection standard is IEEE- 1547. The manufacturer must be able to provide a certificate Resources: www.dsireusa.org (Provides list of utility interconnection agreements)www.dsireusa.org www.irecusa.org (Provides examples of friendly interconnection agreements)www.irecusa.org

11. Zoning Most zoning districts do not have an established ordinance for small wind. Changing or creating a new zoning ordinance can be a time consuming complicated process. In order to drive local communities To participate in state renewable Mandates, some states are adopting Preemption laws.

12. The Zoning Issue is about towers  Towers are necessary to get the wind generator into the wind. Small wind generators must be installed on towers that are 25-30’ above any surrounding object within 300’ of the tower.  Typical tower heights for small wind generators range from 42’ to 120’  Restrictions in most counties limit tower heights to 35’. Resources: www.awea.org/smallwind/documents/modelzo.htmlwww.awea.org/smallwind/documents/modelzo.html www.planning.org (American Planning Association)www.planning.org

13. Conclusion The first installation in a place is always the most challenging. Thereafter the process for future installs becomes easy.

14. Questions? Southwest Windpower, Inc. 1801 West Route 66 Flagstaff, Arizona 86001 Web: www.windenergy.comwww.windenergy.com Andy Kruse VP – Business Development Andy@windenergy.com “Renewable Energy Made Simple” 14