Successfully capitalizing on the potential benefits of wind power requires a multi-step approach to get projects, such as installing wind turbines, off the ground without delay.

With energy prices taking an increasing share of municipal and personal budgets, local governments and individuals are exploring the possibility of getting their power from alternative energy sources. One resource with significant potential for Massachusetts is wind power.

Harnessing such a valuable resource can be difficult, however, due to start-up costs and land-use controls that have not yet been modernized to accommodate wind technology. Successfully capitalizing on the potential benefits of wind power requires a multi-step approach to bring all of the stakeholders together and avoid the years of delays that can prevent projects from coming to fruition. If municipalities plan ahead and educate their residents about state grants and potential tax incentives for these projects, there is a much higher likelihood that the projects will become a reality. The following are steps that ought to be taken in the planning process:

• Consider local resources. The initial stage of planning for a wind project includes site selection and wind assessment. A number of factors have to be considered, including requisite wind speed for the wind turbines. For larger-scale projects, average wind speeds need to be at least 13 miles to 14.5 miles per hour, with smaller-scale projects requiring lower wind speeds. If multiple wind turbines are planned, there needs to be enough space between the turbines to allow for optimal efficiency. Site selection is crucial to the success of the project. One of the best resources to help local communities address these issues is the Massachusetts Technology Collaborative, which administers the Renewable Energy Trust and is funded by an excise tax on energy bills throughout the state. To help local communities with siting issues, the MTC has established a community wind atlas, which identifies areas with the most power generation potential. The atlas contains two maps: a wind resources map that shows mean wind speeds for the different areas of a town, and an open space map showing municipal, county, state and federal open-space parcels with wind speeds averaging greater than 14.5 miles per hour.

Using these maps, local communities can be creative when locating their projects. Given the dense development and high land values in Massachusetts, large swaths of land for large-scale wind projects may be difficult to come by. Nevertheless, local communities are maximizing their under-utilized resources. For example, some communities have started to install wind turbines on landfills. These are generally areas that a municipality already owns and where there is not much opposition to the project from neighbors. By taking a measured approach to wind assessment and site selection, communities can enhance the likelihood of success for their wind energy project.

• State funding sources. To further aid local communities in the planning and construction process, the MTC offers a number of grant programs that can be used for wind energy projects, including its Large Onsite Renewables Initiative. Under this program, the MTC awards grants for feasibility studies, design of the project and construction. The feasibility study grants are capped at $40,000 per project, while design grants are capped at $125,000 per project and construction grants are capped at $275,000 per project. To qualify for the funding, the project must have the capacity to generate greater than 10 kilowatts of power per hour.

The MTC also administers the Small Renewables Initiative by providing rebates for wind projects that generate less than 10 kilowatts of power per hour at residential, commercial, industrial, institutional or public facilities. Under the program, the collaborative has $3.6 million dollars in rebates to award per year through 2010. The size of the rebate is determined by the size of the project.

• Potential tax incentives. Along with the ability to receive grants and rebates for wind energy projects, a number of tax credits and deductions may be available. For instance, the Solar and Wind Energy state tax credit may be available for individuals who install wind energy systems for 15 percent of the net expenditure of the system up to $1,000. A business that installs a wind energy system may be able to deduct from its net income, for state tax purposes, any costs incurred from installing the unit. For individuals, the cost of equipment used directly in a wind system to meet the energy needs of a person’s principal residence may be exempt from state sales tax. Individual taxpayers may be able to obtain a property tax exemption for up to 20 years from the increased value of the property due to the addition of the wind turbine. Federal tax incentives may also be available, including a depreciation deduction for wind property and a deduction for up to 10 percent of the cost for investing in, purchasing or constructing qualifying energy projects. These and other potential tax benefits should be reviewed to determine possible tax incentives for these projects.

• Adopt proactive zoning. Some major barriers to businesses and individuals taking advantage of these benefits are the current zoning and land-use controls in municipalities. Communities can prevent those challenges by proactively adopting zoning to control where wind turbines may be installed. One approach taken by the Massachusetts Executive Office of Environmental Affairs in their model zoning by-law is to allow by special permit wind projects that generate more than 60 kilowatts of energy per hour in designated zoning districts. Regulations to consider include the allowable height of the wind turbines, setbacks from the nearest commercial or residential structure and property line, noise and liability. The model by-law handles those issues by providing that wind turbines must be set back a distance equal to 1.5 times the overall blade tip height of the wind turbine from the nearest existing residential commercial structure and 100 feet from the nearest property line and private or public way. One way to handle potential noise issues from the turbines is to require that the wind facility comply with the provisions of the state’s noise regulations. To ensure compliance, an analysis prepared by a qualified engineer should be presented to the special permit granting authority. To address liability issues, the applicant should provide a form of surety to cover the cost of removal of a wind facility in the event that the town must remove it. An applicant should also be required to show proof of liability insurance.

Communities can take many proactive steps to make wind energy more available to residents, businesses, and municipalities. When communities understand the ways wind energy benefits residents, including state grants and tax incentives, they can make reasoned decisions to encourage this valuable energy resource. By enacting a proactive zoning by-law regarding wind energy they can also locate wind turbines in the most optimal area for their community. Having taken these steps, a community should be prepared to maximize wind resources for its residents.

Harnessing Wind-Energy Potential Can Benefit Community Projects

by Banker & Tradesman time to read: 5 min
0