United States Small Wind Turbine Market

Market Overview

The United States small wind turbine market size was valued at USD 23,153.2 thousand in 2023 and is projected to reach a value of USD 76,329.8 thousand by 2032, registering a CAGR of 12.6% during the forecast period (2024-2032).

The small wind turbine market in the United States is growing steadily, owing to rising demand for renewable energy. As of May 29, 2023, the American Wind Energy Association (AWEA) reported that the total installed wind power capacity in the United States was 97,963 megawatts (MW). The country has a total potential wind capacity of 10,640,080 megawatts.

Furthermore, small wind turbine retrofits, or the installation of new turbines on existing towers and foundations, accounted for 80% of small wind capacity additions in 2020. As the market matures and technology advances, small wind turbines are expected to play a more significant role in the country's energy transition, helping to build a more sustainable and resilient energy infrastructure.

Market Dynamics

The United States Small Wind Turbine Market Drivers:

Supportive Government Policies and Incentives

Supportive government regulations and incentives are critical in boosting the adoption of tiny wind turbines in the United States. Federal tax credits, state-specific incentives, grants, and rebate programs make investing in small wind-generating installations financially appealing for individuals and businesses. The US federal government provides a 30% investment tax credit (ITC) for wind turbine projects that are more significant than one megawatt (MW). The Inflation Reduction Act (IRA) of August 2022 extended the ITC and PTC for wind projects until 2024. The IRA also provided additional tax breaks and enhanced credit amounts for projects that met specific criteria. In 2025, the PTC and ITC will be transformed into technology-neutral forms, which will be phased out in 2032.

Additionally, the California Public Utilities Commission's Self-Generation Incentive Program (SGIP) encourages installing dispersed energy resources such as wind turbines. The program offers incentives for qualified technologies placed on the customer side of the meter. California contains more than 11,000 wind turbines, with 4,029 at the Altamont Pass wind farm and 2,159 at the San Gorgonio Pass wind farm. The Altamont Pass wind farm is one of the world's largest, with 4,930 tiny wind turbines producing 576 megawatts of electricity.

The United States Small Wind Turbine Market Restraints:

Inconsistency in Wind Pattern and Intermittent Nature of Winds

Small wind turbines may need more electricity to justify the expenditure in areas with unpredictable wind patterns. This is especially problematic for home users dependent on a consistent power source. According to the Center for Sustainable Systems, land-based wind turbines in the United States have an average capacity factor of 35%, ranging from 21 to 52%. However, research indicates that wind turbines only produce at or above their average rate around 40% of the time, implying that they generate little to no power 60% of the time. Wind speeds vary continually, limiting wind turbines to generate 25-30% of their maximum potential power output.

Furthermore, the capacity factor of a wind turbine is calculated as the average power production divided by the maximum power capability. Wind generators in the United States have an average capacity factor of 35%, lower than the 93% average capacity factor of nuclear generators. The Great Plains contains a broad belt of strong winds, with average yearly speeds of roughly 22 miles per hour (10 meters per second). The average wind speed in Fargo, North Dakota, is 12.3 miles per hour all year, day and night. Wind speeds are lower in July and August. However, summer thunderstorms can generate powerful wind gusts in localized locations. As a result, the intermittent and variable nature of wind resources poses considerable barriers to deploying tiny wind turbines in the United States.

The United States Small Wind Turbine Market Opportunity:

Rural and Remote Communities

The residential sector represents a significant market opportunity for small wind turbines as homeowners grow more interested in producing renewable energy and cutting their electricity bills. Wind is the fourth-largest source of electricity generation in the United States, making enough to power 46 million homes. Wind power is a renewable energy source that has the potential to reduce carbon dioxide emissions by 336 million metric tons per year in the United States. This is equivalent to the emissions from 73 million automobiles. Wind power is also the greatest form of renewable electricity generation in the United States, accounting for 10.1% of total electricity production. California is the third largest wind energy provider in the United States, and wind power is the state's principal renewable energy source.

Regional Analysis

The United States small wind turbine market is expected to expand at a CAGR of 12.6% during the forecast period. The small wind turbine market in the United States is growing steadily, owing to rising demand for renewable energy. As of May 29, 2023, the American Wind Energy Association (AWEA) reported that the total installed wind power capacity in the United States was 97,963 megawatts (MW). The country has a total potential wind capacity of 10,640,080 megawatts.

Furthermore, small wind turbine retrofits, or the installation of new turbines on existing towers and foundations, accounted for 80% of small wind capacity additions in 2020. Due to favorable policies and abundant wind resources, Texas, California, Iowa, and Minnesota lead in small wind turbine installations. As the market matures and technology advances, small wind turbines are expected to play a more significant role in the country's energy transition, helping to build a more sustainable and resilient energy infrastructure.

Additionally, small wind turbines help to reduce greenhouse gas emissions by offering a cleaner alternative to fossil fuels. For example, a single small wind turbine with a capacity of 10 kW can offset around 12,000 pounds of CO2 per year. According to the United States Department of Energy, small wind turbines help avoid the emission of approximately 1 million metric tons of CO2 annually, contributing to national renewable energy and climate goals.

In addition, the Inflation Reduction Act (IRA) 2022 established long-term incentives for distributed wind, which will be available for the next decade. The IRA extends the Residential Renewable Energy Tax Credit for small wind turbines through 2034. Since 2011, at least 23 small wind turbine models have been certified to the American Wind Energy Association (AWEA) 9.1-2009 or International Electrotechnical Commission (IEC) 61400 standards. As of June 2023, only nine models have received current certification. Small wind turbine manufacturers must renew their certifications on an annual basis.

Segmental Analysis

The United States small wind turbine market is segmented based on axis type, grid type, component, hybrid system, power, and application.

The market is further segmented by axis type into Horizontal and vertical Axes.

Horizontal axis wind turbines dominate the market, valued at USD 20,459.9 thousand and rising at a CAGR of 13.0% over the projection period. The segment's expansion is attributed to its high efficiency, scalability, and proven performance. HAWTs are preferable because they can generate more power more efficiently, particularly in large areas with predictable wind patterns. They are also easy to scale, allowing larger installations with more power output.

Based on grid type, the market is fragmented into Off-Grid and On-Grid.

Off-grid small wind turbines have dominated the market based on grid type, with a market share of USD 16,894.8 thousand and a CAGR of 12.0% over the forecast period for various reasons. Their ability to provide power in remote and rural locations where grid connectivity is difficult or unavailable makes them valuable. They are most commonly seen in rural areas, farms, and off-grid homes, where energy independence is essential.

The market is sub-segmented based on components such as aerogenerators, solar photovoltaic panels, battery banks, charge controllers, and inverters.

Aerogenerators dominate the market, with a share of USD 10,191.9 thousand in 2023 and a CAGR of 12.6% throughout the forecast period. Aerogenerators are the system's most critical and valuable component since they capture and transform energy. Their efficiency in converting wind energy directly impacts the system's overall energy production. Given its relevance in energy generation, the aerogenerator has dominated the small wind turbine market. Its effectiveness, technological advancements, and direct impact on overall system performance make it the most significant component.

The market is divided by hybrid systems into Wind-Solar Photovoltaic (PV), Wind-Diesel, Wind-Fuel Cell, and Wind-Hydro.

Wind Solar PV dominates the market, with a share of USD 13,727.6 thousand in 2023 and a CAGR of 13.6% over the forecast period. Wind-solar PV hybrid systems combine wind turbines and solar panels to generate wind and solar energy. This combination takes advantage of the complementary nature of wind and solar power, with solar panels generating electricity during the day and wind turbines providing power at night and on cloudy days.

Based on power, the market is classified into Up to 5kW, 6kW-10kW, 11kW-20kW, and 21kW-50kW.

The most popular sector is up to 5kW, accounting for USD 12,900.5 thousand in 2023 and growing at a CAGR of 13.4% during the projection period. Small wind turbines with power ratings of up to 5 kW are widely used in residential and small-scale applications. Individual homes, cabins, and small farms can all profit from these turbines' energy output. They are trendy in rural and remote areas with limited or non-existent grid access.

The market can be bifurcated by application into Residential, Commercial, Agriculture, Industrial, Construction, Infrastructure, Telecommunication, Government & Military.

The agriculture industry emerges as the dominating segment, with a share of USD 8153.4 thousand and a 13.3% CAGR over the forecast period. The segment's growth is due to its unique energy requirements and the natural compatibility of wind power with agricultural operations. Agricultural activities are commonly carried out in rural or remote areas with limited or unstable grid access, making small wind turbines an appealing option for satisfying on-site energy demands.

Recent Developments

• May 2024- The US Department of Energy (DOE) chose Principle Power and Aker Solutions to pursue serial production of WindFloat® foundations.
• February 2024- The US Department of Energy's (DOE) National Renewable Energy Laboratory requested support from the Competitiveness Improvement Project (CIP) to commercialize and expand small and medium wind turbine technology.