| By :
Roger Brown
When you are considering wind turbine prices it is interesting to look carefully at what the drivers are behind the price declines that we've seen in recent years. As costs come down there are more and more manufacturers out there who are willing to make products at a very low cost. Not all of them are reputable however and you need to have a little understanding of how prices are arrived at in order to make sense of the market and make the correct choice for your house. The number one driver of cost by far is competition. As more units are sold in more incentives are offered by the government, more players will get involved in this game. As they are doing a very rapid pace nowadays, everybody and his brother is looking into the possibility of making money with renewable energy solutions. It doesn't matter whether they believe in the product or in the solution. There are a number of people that know how to get things done in countries with very low labor rates and that means they can get parts and components manufactured a lot cheaper than others in competing countries. So, let the buyer beware. You really need to understand where the parts are made and with what quality and from what materials. There is just no substitute for making sure yourself and checking on all the details before you even think about buying anything. The second reason costs are going down is this entire issue of scale. Renewable energy and especially wind turbine prices have been the subject of a number of news reports in recent years and as this topic gets more and more coverage or more people will be thinking about it, researching and buying a product like this. As more and more wind turbines make it onto roofs of houses and the fields on farmland, wind turbine prices will commensurately go down even further. The third reason wind turbine prices are declining is the lack of good alternatives. If you are going to make power at your home you basically have three choices - solar, wind energy, and geothermal. Solar and geothermal energy are not great choices at the moment because their economies of scale have not kicked in. It is very expensive to set up a solar or geothermal project at your house because of the high upfront cost of getting in those games. In conclusion, wind turbine prices are simply a factor of supply and demand and the more the economics favor scale of rollout to the market in general, the greater the price drop for the consumer will be.
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