With Farm Bill discussions continuing, the Renewable Energy for America Program still faces uncertainty. American Wind Energy Association deputy director for distributed and community wind Larry Flowers says REAP made it into 2012—though at a much reduced level—due to work by the program's stakeholders.

Flowers says the program gives agricultural producers and rural businesses incentives to invest in renewable energy. REAP provides a 25-percent maximum grant and an equal amount of potential loan guarantees. Flowers says that makes if affordable for rural communities.

"As far as the wind industry goes, this allowed the small wind industry and the community wind industry to engage rural America, which has enormous wind potential, has a need for economic development and is interested in some self-reliance. And so it really did put together incentive packages that made a good match between small and community wind and rural America."

There are many applications for wind energy in rural America, Flowers says, including for irrigation, dairy processing, animal confinement operations, and energy around the farm. He says REAP provides farming operations incentives to reduce energy costs that have been growing over the years while also guarding against the fluctuation of energy.

"As some of the older coal plants get retired, the newer generation that comes on, whether it be coal or natural gas or renewable energy, is more expensive than these old, retired coal plants. Energy prices are going up and with fossil fuel, of course, they're variable, they're renewable energy, they're predictable because the fuel is free."

Flowers says it's important to engage the full spectrum of options for wind energy and renewable energy in the rural sector. The large wind farms provide great economic development to rural America and are important for rural America's future, Flowers says, but the smaller community wind projects also need to play a role with independence, security, economic development, and environmental benefits.

One of the important changes to REAP, Flowers says, is that it now applies to educational facilities. He says education is critical for a robust and sustainable renewable energy future. Wind for Schools is a program that goes along with this renewable energy education.

"We train teachers and we provide the kids with curriculums so they can see these options as they move into the workforce. It also, hopefully, interests them in the opportunity that renewable energy, and wind in particular, offers these folks as they go from high school either into the trade or right into the workforce in construction right out of high school or on to college. There's a whole broad array of wind occupations that are out there, and by putting small wind turbines at rural schools through the REAP program and introducing curriculum, we can excite the next generation about a robust wind future and their role in it."

Policy is another point of importance, Flowers says, because it determines what will happen. He says it all comes back to renewable energy stakeholders—including those in the wind industry and rural America—letting their lawmakers know REAP is an important piece of America's energy future. People can't just think someone else will speak up, Flowers says, but everyone has to do their part in securing a prosperous energy future.

The Renewable Energy for America Program has helped the U.S. make unprecedented gains in renewable energy and energy efficiency. Many clean energy projects across the nation have received funding through the program.

USDA Rural Development Energy Coordinator Scott Collins says REAP exploded across the country last year. Collins says competition was fierce in his state, New York. As a result, Collins says they were able to fund 73 REAP projects in New York last year—seven of which were wind projects.

"We're actually pleased that we were able to fund that many because we were besieged with solar applications this past year. Wind projects generally stand up fairly well to solar, but there were simply a massive number of projects that came to us. And as a result, we ended up with seven successful projects for wind. Generally on farms, in both cases, and ranging from one small 5-kilowatt project up to 20-kilowatt projects with several more larger projects, which we were unable to fund: 50-kilowatts and one 900-kilowatt."

Collins says the key to success for REAP project applications is a willingness to learn the program and learn how to turn in proper applications. He says it has worked to everyone's advantage. For example, Collins notes one wind turbine vendor's efforts in 2011.

"To tackle the REAP program, to do the work involved in preparing the applications, and to ask the questions to learn how to do a good application, a complete application. Do a good job on the technical report, which is critical for the competitive scoring. And because they did that, they learned the process well and were successful with five of the seven wind projects which we were able to award. And this has been the experience with most of our technologies in the REAP program."

Throughout his experience with REAP, Collins says he has learned it's best to start as early as possible with at least one vendor when pursuing a renewable energy or energy efficiency project. Also, he says it's important to have a good idea of the market—how projects are pricing out—to get the best price available. Collins suggests trying to work with a vendor who is familiar with the REAP process because of its complexity.

REAP's future is uncertain right now, Collins says, as this is the final year the program is authorized in the Farm Bill.

"We certainly think that given the dramatic upsurge in interest in the program through the past several years, we think there's a market out there. But that decision's not ours. We'll just sit back and wait and see what the congressional deliberations bring."

The final deadline for REAP applications is June 29th.

The next deadline for grants under the Renewable Energy for America Program (REAP) is quickly approaching. REAP has been successful in spurring several wind projects across the nation. Wind Utility Consulting owner and professional engineer Tom Wind has seen REAP success in his state, Iowa. Wind says the program has inspired people to move forward on projects and motivated them to take the first steps in pursuing projects.

"In my state, I think there's probably been about 10 projects that have had REAP grants. And, in every one of those cases that the REAP funding has been instrumental in the project achieving their financial goals. In other words, being able to make a profit, make a reasonable level of profit, and to reduce the risk a little bit."

As an engineer, Wind is involved with REAP applications from the technical perspective. The applications contain guidelines, which he says are important to do even if not applying for a grant.

"We found that the guidelines are really helpful for many people in figuring out all of the aspects of the project that are important. And it could be from where are you going to get your money, where are you going to put the wind turbine, how is the wind turbine going to be connected up to the grid, where is the power going to go, who's going to pay for it. All of those basic questions, it makes you analyze it very carefully. All of this is necessary to determine if a project is feasible and how much you're going to make on the project."

Wind encourages people wanting to apply for a REAP grant to start early. Grant applications take a lot of time, Wind says, and coordination with several people.

"If you're looking at a grant deadline that's looming, you need to consider that not everybody's going to be able to maybe do their part of it when you need them to do that. Some people get busy and can't always respond right away to information that you need. So it's always best to start way early and to contact the various people ahead of time, say hey I need you to help me do this, so that they can put it in their schedule and get it to you in good order. I don't know how many times I've worked right down to the wire on these grants, had to pull all-nighters just to get the grants done. It's really difficult, hard to do that."

The deadline for renewable energy system feasibility study applications is March 30th. If anyone is interested in completing a REAP application, Wind says it's important to start now. Also, he says it's uncertain if there will be any funding for REAP in the next Farm Bill. Wind says it's important for people who are interested in this program to contact their congressmen and let them know why REAP is important and to include REAP funding in the next Farm Bill; otherwise, he says the program may go away.

The Renewable Energy for America Program [REAP] provides grants and loan guarantees for a broad range of clean energy technologies including biomass, wind and solar, which helps farmers and rural small businesses cut their energy bills with new modern technology. Environmental Law and Policy Center senior policy advocate Andy Olsen says farm energy development has made great progress since 2003. Olsen says that progress has allowed every ag sector to benefit according to their own circumstances and energy needs.

"For example, the dairy industry is using REAP to really move forward with manure digesters in a great way, as well as for energy efficiency for their operations. And then we've seen a lot of community energy development with community wind and community digesters have taken place with the energy title programs, and there's just so much more potential that we have. It would be a real shame if Congress was to halt this progress now by retreating in the 2012 Farm Bill."

Community Energy Partners president Sue Jones conducts REAP outreach in Maine and has written grants that have brought more than $1.2 million in funding and around $500,000 in guaranteed loans for renewable energy projects. Jones says as a result farmers and small businesses not only save money but also help the environment by reducing greenhouse gas emissions.

Jones says there have been two prominent changes to REAP recently.

"In general, the program has remained intact as it has for the past few years. But the two prominent changes are drastically reduced funding levels since last year to about $24 million available this next round. And the second one, which is very important, is that the timeline has changed. In the past, most of the time the deadlines were in late spring, April, May or June, and this year they're in February and March. So it's very important for folks to know when the deadlines are so they can get their applications in in time."

About a year ago, Jones learned that four schools in Ohio received funding from REAP by incorporating renewable technologies. Even though schools technically aren't eligible applicants, they qualified under REAP as a small business by incorporating those new technologies. Jones says her outreach now extends to schools and municipalities. There are various stages at which schools and municipalities can apply, according to Jones, but most importantly, they can apply for a feasibility grant. That grant can offset some of the costs and risks of doing an upfront community wind feasibility assessment.

"If they're awarded that, or if they go forward with that, and they find that they do have a feasible site, they can actually come in for a second round of funding the following year and apply for a REAP equipment grant that can help them offset the costs of a wind turbine or other pieces of wind equipment. So it's a nice program in that it can help you in consecutive years to help get your project in place."

ELPC's Olsen says the REAP grant application process is competitive because of the limited funds. Olsen suggests people work with their state rural development energy coordinator on the applications from the beginning so the coordinator knows they are working on the project and they get good advice.

"There are different applications for small projects as compared to the bigger projects. The important thing is to plan ahead so you have your energy audit done for your facility early and then to put together a good application with an eye toward the number of points that you're scoring. The competitive process uses points, and therefore the more points you have, the more likely you are to win. So, people should definitely pay close attention to that."

Over the past two years, Olsen says there have been drastic and disproportionate cuts to REAP and the other farm bill clean energy programs. Olsen says Congress cut REAP funding for 2012 by 66% from the year before. With Congress currently working on reauthorization of the Farm Bill, Olsen says it's uncertain as to whether REAP and other energy title programs will be included in the next Farm Bill.

"Clean energy and conservation are two of the most popular parts of the Farm Bill with the general public, but they're also two that are facing the deepest cuts right now. So, the question to what the future holds really depends on how much people speak up to their members of Congress and let them know that this is a priority for America, to keep moving forward on the progress that we've seen in REAP over the years of the program."

To apply for a REAP grant, visit www.farmenergy.org and search for your state rural energy coordinator under application tools. Also, work with your hardware vendor to make sure you have the proper information necessary for the equipment you want to install.

The deadline for energy audits and renewable energy development assistance applications is February 21st.

Perhaps you've thought about the environmental, financial, and energy benefits of producing wind energy in the U.S., but Rich VanderVeen says there are big agricultural benefits as well.

VanderVeen, the president of Mackinaw Power, LLC in Michigan, has seen how wind energy development can save farmland for future generations.

"Example, our 35,000 acres under one set of easements with 250 families and 133 wind turbines in Gratiot County, guarantees that that 35,000 acres will not be subject to sprawling America, not subject to forms of degradation of the countryside, but rather kept intact for the next 30 to 50 years. That farmland will still be farmland, for the children, grandchildren, and great-grandchildren of the people who are signing the easements in 2011."

VanderVeen says the Gratiot (grash-it) County wind project did not face much opposition. He says that's because of the way they approached the project. He says his golden rules of development could be utilized by any community across the country to garner support for local wind energy production.

"Earn the trust and confidence of the local community. That takes a lot of engagement of the public, and informing the public, and education, education, education. Involving people, allowing them to make sure that their questions are asked and answered. That's number one. Number two. Of course you have to spend a lot of time and energy and money investing in wind studies. Number three, you must of course have the transmission available to bring the project forward. You must then utilize the trust and confidence of the local community, the state and federal government to secure local, state, and federal permits and approvals. And finally, of course, you have to sell the power."

From there, VanderVeen says it's time to negotiate a wind turbine supply agreement and construction contract. Then he says it's important to assure the project is built safely, on time and on budge, and that it is run efficiently. Finally, he says all promises made to the landowners and community must be kept.

Perhaps you've heard the statistic that America is losing more than an acre of agricultural land to development every minute of every day. It's a startling realization—and one that groups and organizations are trying to address.

Rich VanderVeen, president of Mackinaw Power, LLC in Michigan, says the wind industry can actually play a positive role in protecting the nation's farms calling it a way to keep family farms in the family for generations.

"Without farms, there'll be no healthy food; without new income to future farmers, there will be no farms. So wind power becomes a very important wealth-building second crop, if you will, at 450 feet."

VanderVeen says wind energy development creates financial, social, and ecological capital.

"Cleaner air, cleaner water: ecological value. Community involvement, community engagement, community investment is the social side of it. And of course financially, we're trying to create more wealth from the wind."

VanderVeen says it's time to wean the nation off of foreign and fossil fuels, make more power in America, and redefine how we want to leave the world for the next generation. He says developing the wind resource is a way to address each of those needs.

"I think most people would agree that renewable energy, with no fossil fuel and no foreign fuel, creating clean air, clean water, and investments in our community is the way to go. That is a solid investment in America, it's a solid investment in keeping our family farms family farms, it's a solid investment in public health, it's a solid investment in future advanced manufacturing. It's a way to create a stronger America."

VanderVeen has seen the benefits of wind energy development first-hand in Michigan where one wind energy project has saved thousands of acres of farmland for future generations but also provided a boost to manufacturing that has helped the state weather the economic downturn.

Community wind and small wind have both been a boon to rural America and farmers.

Small wind is classified as wind turbines with capacity ratings from one to 100 kilowatts. They can provide power for residential homes, farms, small businesses, and schools. Community wind is clean, local energy with more elements of local ownership, involvement, and participation. Rather than an individual making the investment in the project, people in the community make the investment and determine what's best for their community. The project is typically on a more commercial scale with capacity ratings of of 100 kilowatts to two megawatts.

Lisa Daniels, executive director of Windustry, a non-profit group that promotes community wind throughout the U.S., says both have their benefits.

"It keeps your energy dollars as local as possible. The economic benefits stay more local. If there's a local project coming together, you're using more local materials, more local labor, sometimes going to a local bank, going to the local engineers, the local service providers for that project."

As Congress looks to find budget savings and ag leaders work early to put together the pieces of the next Farm Bill, Daniels says there are important programs that keep small and community wind alive that could find themselves on the cutting room floor of Congress.

"There are programs that are slated to be cut. The clean energy programs are being severely hit. One of the pieces that supports community wind is called REAP - Rural Energy for America Program. And this is all about local ownership of wind turbines, wind energy projects."

Daniels says wind energy has become a farm product, and as such, farm energy programs are important to farmers and ranchers.

"Funding decisions are being made that will affect farm energy progress for years to come."

Daniels says America will benefit from continued farm energy progress in the coming years.

"These projects contribute to energy security and the rural economic development and the rural communities, and they also help to protect our environment and grow income, new income sources, for farmers."

For more information on community and small wind, visit windustry.org.

With support from the U.S. Department of Energy, Windustry has been bringing practical "how to" information on community and small wind to every region of the country. These Community Wind Across America conferences showcase ordinary people doing extraordinary work on a local level for residential and commercial wind development.

Lisa Daniels is founder and executive director of Windustry—a group that promotes progressive renewable energy solutions and empowers communities to develop and own wind energy as an environmentally sustainable asset. She says these conferences really have something for everyone—especially those in rural America.

"It's for farmers, ranchers, rural community leaders, rural community citizens...anybody who wants to learn more about wind energy and how it might be right for either their home or their farm or their business or their community."

According to Daniels, national experts will provide all of the information rural landowners need to unlock the economic growth potential of locally-owned wind energy.

"They'll see what wind energy can do and what kind of environment it does best in. You'll also be able to meet and greet experts, ask your questions. We'll have speakers that will be available and accessible both on the podium and off the podium. We'll have in-depth information."

After all, Daniels says the key goal in community and small wind is to keep the economic benefits as local as possible while the nation changes its energy sources. So a wide variety of topics will be covered in the conference sessions aimed at advancing the opportunities for local wind energy production.

"One of the things that we're going to be doing is showcasing successful wind projects on every level. People are going to be coming and talking about how they put their projects in the ground; what some of the challenges were; how they got started; who they talked with. As much as we can, we'll be showcasing what kinds of incentives they used. We'll be talking about the permitting process and how to work your way through so that your project can be installed. And we'll also be talking about the different technologies. You know, what machine might be right for your wind resource or your farm or your budget or the amount of electricity that you need to be using. All of these things will be discussed."

These conferences have already been held in the Rocky Mountain, Midwest and Mid Atlantic regions, but interested folks still have an opportunity to participate in the upcoming Northeast Region Conference. The conference begins Wednesday, October 26 in Albany, New York. Check out www.windustry.org/cwaa for all the details.

National Renewable Energy Laboratory Energy Analyst Eric Lantz knows all about the job creation and economic development that comes with the development and operation of wind power. In fact, he is the author of a study titled, Economic Development Benefits from Wind Power in Nebraska: A Report for the Nebraska Energy Office (PDF 639 KB).

"What we found actually is that employment ranged, just from construction alone on average, roughly 1,000 to 2,000 workers per year. During the operations period, when the full amount of capacity is up and running, we actually estimated that that would support 2,200 to 4,000 workers. Those are per year estimates. And a significant portion of the higher number is the result of that significant local ownership component. That really does bring about much greater economic development activity.

In total, Lantz says the study estimated that building 7,800 megawatts of wind power over a 20-year period would bring 7.8-billion to 14.1-billion to the state of Nebraska throughout the construction and operation period.

Earlier this year, Lantz co-authored another study on the economic development benefits of wind energy for the Wyoming Infrastructure Authority. He says the study was more comprehensive including a look at wind development up to 9,000 megawatts and building the transmission to move that wind out of the state but showed comparable results.

"We estimated about 4,000 to 6,000 Wyoming jobs per year would result during a 10-year construction period and then during the operations period we estimated it would support about 2,300 to 2,600 Wyoming workers. Just in terms of dollars, there were some peak years of economic activity in which we estimated that there would be more than a billion dollars each year from construction and operations related activities. And then when just doing the operations alone, that's about 380-million dollars per year."

Lantz typically looks forward with his work—evaluating economic development if a project or set of projects are built. But he also looks back to see if his results are consistent with actual results.

"We're always trying to go back and look to see how our modeling compares to what actually happens on the ground. And that's done with both the methodologies that we use, as well as those that others are using. And in general, we found that things are relatively consistent. But we do tweak our models from time to time just to ensure that that consistency remains."

Lantz does note the indirect impacts of wind power are harder to measure but says the ripple effect definitely provides for additional economic activity at multiple layers—including in the area of manufacturing.

As the economy has suffered and unemployment has stayed high, there's been a lot of talk about green jobs and the green economy. Some critics claim the green economy isn't real—or is at least oversold. But for National Renewable Energy Laboratory energy analyst Eric Lantz, it's all about the opportunity for jobs—and particularly where those jobs are created.

Wind energy development, according to Lantz, has the power to maintain communities in rural areas of the country. Areas that have been under-invested in for years and are losing families and youth, he says, have the biggest opportunity to see job creation and increased income. He says the primary direct income contribution is through annual land lease payments that often go to the nation's farmers.

"A lot of times we see payments that are on the order of four to six-thousand dollars per megawatt. And each turbine may be one-and-a-half to three megawatts. It can add up to a relatively substantial amount. In addition, wind projects make relatively sizable property tax payments to the local government. Often times property tax payments are on the order of seven-thousand dollars per megawatt, so again, those property tax payments can add up rather quickly."

Lantz says that has a ripple effect—providing for additional economic activity at multiple layers. He notes local purchases and manufacturing provides for tremendous indirect economic development activity in the state or local community. And because of transportation costs, Lantz says manufacturers want to locate in areas of demand—those with a great wind resource, which are typically in rural America.

"We've seen a number of OEM equipment manufacturers locate kind of throughout the wind corridor, the central Plains of the U.S. And that includes Texas, Arkansas, Kansas, Nebraska, Wyoming, Colorado, and then Iowa. In addition, some of the lower-tier manufacturers, those people who make bearings, gear boxes and other components, they provide a significant new opportunity for manufacturers in the Midwest."

That's one reason Lantz says it's beneficial to build wind energy projects as opposed to other conventional sources of electricity generation. He says new manufacturing in the U.S. boosts the economic development potential from wind power.

"Most recent estimates estimate that domestic content in the wind energy is about 60 percent. And what that means is that from an economic development perspective, we can provide a very large amount of our labor and our equipment for wind energy projects in the U.S. That obviously benefits the local communities where projects are sited, as well as the rest of the supply chain. And that's not something that's true of all types of power generation."

That doesn't mean Lantz believes the use of local goods should be required. He says the way to maximize the economic development potential of wind energy is providing incentives or training programs that can attract manufacturers to an area. He says making the environment more competitive is the best way to increase the local share of goods and services that go into projects.

Before anyone decides to move forward with a renewable energy project, Montana State University Extension Wind and Transmission program director Sarah Hamlen says, they need to evaluate their options using the Energy Pyramid. The first thing to consider is energy conservation, then energy efficiency, followed by energy demand, and finishing at the top with renewable energy.

But once measures for conservation, efficiency, and demand management have been implemented—if the decision is made to install a wind energy system—Hamlen says there are several additional things to consider. For instance, what is an appropriate size? Ultimately she says it's important to work with a qualified installer to determine the proper system size. But Hamlen first suggests using a quick sizing method to provide a starting point for research.

"An easy way to do that is to calculate your total kilowatt hours for the meter that you want to roll back. And when we're talking about grid connected systems, we are talking about usually connecting to only one meter. So identify that meter, and find what a 12-month period worth of kilowatt-hour consumption looks like on that meter. You can then divide that total consumption by the number of hours in a year, 8,760. So we take that annual consumption divided by 8,760 and that will give you your annual energy load."

Next, take the annual energy load divided by two factors: 0.1 and 0.2. This provides you with two numbers that Hamlen says provide an estimated range of the size needed. This will also help the producer get an idea of the costs that will be associated with the system.

Speaking of costs, there is grant funding available that could help offset the purchase and installation of renewable energy generating systems. The Rural Energy for America Program, or REAP, is available through USDA's Rural Development. Hamlen says many funding sources require an energy audit before grants are secured. Because the audit requirements can vary by program, she says farmers and ranchers need to know what is required and make sure to get an audit that meets those needs when applying for financing.

"If you know what funding sources you want to apply for, you should check to see what their energy audit requirements are before you assume that you're going to apply. What I have found in working with some rural producers is that they do get an energy audit, but then when they went back to try and get financing, they weren't able to universally apply that audit because it wasn't done by a certain type of provider or they didn't cover certain things in the audit."

Hamlen notes many in rural communities are used to being self sufficient. That's why she's comfortable with the idea of farmers and ranchers doing their own operation and maintenance. She says they may just see that as part of owning a system. However, she says there are some things to keep in mind.

"The first thing you need to know is that you most likely are going to need to climb the tower, at least on an annual basis. And you're looking at being some distance above the ground. A couple of other things that I would look at, if there were a system error or something that happened that I could not service on my own, I might have someone in my area that can help me out. One of the biggest things I've found in small wind operation and maintenance is that if you install it right up-front, you most likely will be able to reduce a lot of the system operation and maintenance long-term. I think you also need to remember that you've got a budget for operation and maintenance, even if you're planning to do it on your own. If you look at your vehicle operation and maintenance, and you realize that even though you know you can change your own oil you never do, you might also apply that to your wind system."

Hamlen also notes the importance of getting training so that maintenance is performed safely and in accordance with the warranty or other service agreements associated with the turbine.

The bottom line, according to Hamlen, is that an educated consumer will have the best experience. She says anyone interested in wind energy generation at their home, farm, or business should be prepared to learn, ask questions, and get informed.

"I find that a lot of times when people start looking at small wind, they assume that it's a lot like going to Sears and buying a washer and dryer unit that you go in, you pick out the color you want, you put it in the backyard, and voilà, you're producing your own energy. With small wind, that's not necessarily the case. There are a lot of variables, there are a lot of variances between different manufacturers and different turbines, and especially without a universally applied industry standard at this point, it's very important that a consumer understand what that system is actually capable of so that they have a satisfactory buying experience."

Hamlen says the wind industry is currently working to develop industry standards and test turbines against those newly defined standards.

The interest in renewable energy sources like wind is growing. People are not only interested in reducing their expenses for traditional sources of energy but also improving the environment. But before deciding to move forward with a renewable energy project, Montana State University Extension Wind and Transmission Program Director Sarah Hamlen says there are several important things to consider. She encourages folks to evaluate energy efficiency and alternatives using the Energy Pyramid.

Whether at a home, business, or on the farm Hamlen says no one should install a renewable energy project without looking at energy conservation, efficiency, and demand. Actually, before considering those areas—in order to make the most informed decision—Hamlen suggests starting with assessment. She says there are two things to assess.

"The first thing I think they need to think about is, what am I trying to accomplish? Because your ultimate project or the way that you start to address your energy actions might be very different if you're concerned about financial return or trying to save money or make your situation more comfortable, than if you're looking at reducing your carbon footprint or doing an educational project in your community. The second piece of that, though, is assessing your actual energy consumption, and the most common way to do that is through an energy audit."

Hamlen says a good energy audit can show where energy is used, where action could be taken for little or no cost to make a big impact, and provide an understanding of the total cost of energy that's consumed.

Then it's time to start at the base of the Energy Pyramid, which Hamlen says is conservation.

"We define conservation as everyday actions that can help you to change the amount of consumption of energy that you have. And by energy we may be talking about energy and we might also be talking about water. When we're looking at conservation, we're looking at simple things like reducing thermostat settings in heated or cooled spaces or turning out lights or trying to reduce the total amount of water that we use when we irrigate or landscape our property."

Next, Hamlen says it's time to look at energy efficiency.

"The reason that we distinguish between conservation and efficiency is that there's usually some sort of purchase that's involved in energy efficiency. And that might be a low cost item such as lighting or adding some weather stripping, up to changing out doors and adding insulation or replacing windows. So we do have an investment at the efficiency level, but it's usually looking at long-term reduction in the total amount of energy that we're consuming."

Energy demand is next on the Energy Pyramid. This involves staggering large energy users to reduce peak demand for a billing period or shifting energy usage to periods with less demand on the distribution system.

Finally, energy alternatives and renewable energy are at the peak of the pyramid. Hamlen explains why renewable energy technologies should only be installed after measures for conservation, efficiency, and demand management have been implemented.

"First of all, as we move from conservation to efficiency up to renewables, we increase the amount of complexity and cost associated with those decisions. So we want to make sure that we've reduced the total amount of energy consumption as we move up the layers of that pyramid so that ultimately we can reduce the total cost of our energy, our alternative energy system."

Hamlen says it's important to devote some time to making decisions about energy projects. She says it requires research to gain a better understanding of renewable energy systems before making an investment.

When it comes to wind energy development in the wind farm environment—picture rows of turbines—wind energy is cost competitive with conventional energy sources. But bring that down to smaller scale development and National Wind Technology Center Senior Project Leader Trudy Forsyth says the costs aren't competitive. However, she says the benefits might outweigh the costs.

For one thing, Forsyth says, distributed wind—the use of small wind turbines to produce clean energy on a small scale—means energy security.

"The more we basically go to other countries to get our energy needs met, then the more vulnerable we are to...well, we'll just talk about oil for example. We are vulnerable to, not just the supply, but the cost of the supply for oil. There's a couple of other advantages. We see that projects that are owned by the community have three times the jobs and economic development impact that a wind farm would. The other thing is that wind energy doesn't consume a lot of water compared to the more traditional fuel sources. That's another strong benefit that wind energy can provide."

Forsyth says the greatest job growth and economic development impacts are seen in the community wind market—where a community itself owns the wind turbine project.

"Community wind projects can take on a variety of sizes, a variety of percentage of local ownership. The American Wind Energy Association has defined community wind projects as those 20-megawatts and less with at least five-percent local ownership. Or those projects between 20-megawatts and 100-megawatts with at least a third local ownership."

By the year 2030, the Department of Energy would like to see 20-percent of U.S. energy come from wind. While Forsyth says the Department set that goal with a focus on wind farms and offshore wind, she believes distributed wind has a big role to play as well.

"There's a really strong opportunity, particularly in America's heartland, to have a lot of distributed wind. And we worked with a group called ICF International to do an analysis and their analysis estimated a 220-gigawatt potential for distributed wind, that's community and small wind. And really, that's a phenomenal number because the 20% by 2030 goal is 320-gigawatts. So that's essentially two-thirds of that could be met by distributed wind."

Forsyth says that distributed wind market has great opportunity for growth in rural America, but it will be up to states to make the business decision to incentivize that growth.

The interest in distributed wind generation—the use of small wind turbines to produce clean energy for individual homes, farms, and small businesses—is growing at a rapid pace. With this technology, people are able to generate their own power, cut their energy bills, and help protect the environment.

With more and more people considering the option of wind generation at their home, farm, or business, National Wind Technology Center Senior Project Leader Trudy Forsyth says the need for information is growing and the industry is responding. She says consumers in the market for a small wind turbine will soon be able to select a reliable unit by checking the Small Wind Certification Council for certified products.

"With that now there's been some guidelines in: At what wind speed do you evaluate rated power? At what wind speed do you evaluate acoustics? At what wind speed do you evaluate energy production? And really, energy production is the most important thing to understand. And the agreement worldwide now is that that assessment will be made basically at five meters per second. Further there's an international labeling scheme that's just been developed and is soon to be decided on. So consumers really need to look at that information. Really educate themselves."

Forsyth says the opportunities to get educated on small wind are growing. She suggests windpoweringamerica.gov, awea.org, distributedwind.org, homepower.com, and nrel.gov.

Speaking of information, Forsyth says it's possible consumers have heard something about placing wind turbines on roofs. But she cautions that roof systems see lower wind speed and higher turbulence intensity, making it difficult to get much productivity out of them.

"In general, wind turbines are not really designed for a roof environment or a built environment or urban setting in that if you have anything blocking the wind in the dominant direction, you're going to be inducing turbulence on that machine. That's really the most difficult wind condition for all turbines of all sizes. So in general, you want to put that machine out away from any obstacles in the prevailing wind direction."

Once the perfect location is found, Forsyth says it's time to think about installation. She believes that the smaller the system, the more likely it can be installed by the purchaser—particularly in rural America.

"Rural people are used to maintaining all sorts of equipment and machinery, so this is just another piece of machinery to them. So I really think you can learn to do this yourself and maintain it yourself. If however you decide you want to hire somebody to do that, then you need to look for somebody who's been in the small wind installation role for some time. But another point that's as important is working with an installer who's local. Somebody who can help maintain your system, because these systems will need to be maintained on a regular basis."

Forsyth says eight small wind installers in the U.S. have North American Board of Certified Energy Practitioners credentials. The website is nabcep.org.

Distributed wind generation is not a new concept, but it is a concept that is gaining acceptance in the utility sector. It's the use of smaller wind turbines at homes, farms, businesses, and public facilities to produce energy that can offset energy consumption. Trudy Forsyth is Senior Project Leader for the National Wind Technology Center. She says the increased acceptance by utilities is leading to a greater interest in distributed wind in the countryside.

"The first thing is really understanding what type of wind resource they have at their home or farm or wherever they may be and whether they really have sufficient wind to make it economical; of course realizing that the further up into the atmosphere that you get, the faster the wind speed is. So the taller the tower you can put in, frankly the better, from just generating kilowatt hours or electricity."

According to Forsyth, the cost of a wind turbine is going to depend on the size. The smaller the turbine—the higher the cost per watt. She says a one-kilowatt system will cost somewhere between seven and ten thousand installed. But there are resources available to help with the cost.

"There's a federal investment tax credit that is good through 2016, which is considered very long-term federal policy. And it's for 30% of the installed system cost up front in the year that you pay those monies. You can take it off on a tax credit. With that then, some states and some utilities offer other incentives."

Forsyth says the best way to learn more about the different state incentives is to check out the Database of State Incentives for Renewables and Efficiency. The website is www.dsireusa.org. She suggests checking the database and talking with a utility service provider to see how easy it is to interconnect your system before making a purchase. By connecting a system to the grid—if a net metering policy is available—Forsyth says there's an opportunity to get paid for any excess energy that's produced.

"What we call annualized net metering is the best policy for the utility company as well as for the consumer, because typically when you're producing excess, net excess generation is the term, then those kilowatt hours tend to have a wholesale type of rate versus a retail type of rate. So those excess kilowatt hours transfer from month to month to month."

Forsyth says the availability of net metering and the other incentives qualified for will have an impact on how quickly the costs of installing a wind turbine are recovered. She says the payback time can range from seven to 40 years.

"The payback time is going to be a function of how much you pay for your retail electricity costs. That's the first thing you have to understand. Look at your utility bill. See if all of those charges are electricity-based or maybe some are some flat charges and you need to distinguish between the two of those because those flat charges, sometimes called demand charges, will continue to exist. Then of course the most important thing in wind is the wind speed. The power in the wind is a function of the wind speed cubed, so wind speed times wind speed times wind speed. The faster your wind speed, the sooner you're going to pay that off."

For more information, visit www.windpoweringamerica.gov.