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Model wind farm economics with LCOE, IRR, NPV, and payback analysis. Customize CAPEX, OPEX, and revenue assumptions.
Wind farm economics are driven by the balance between upfront capital costs (CAPEX), ongoing operating costs (OPEX), and revenue from electricity sales. The financial viability of a project depends on location-specific wind resources, technology choices, financing terms, and electricity market conditions. This calculator helps you model these variables to understand whether a project creates or destroys value.
The Levelized Cost of Energy (LCOE) represents the average cost per unit of electricity generated over a project's lifetime, discounted to present value. It is calculated as:
LCOE includes both the initial CAPEX and annual OPEX, discounted at the project's weighted average cost of capital (WACC). A lower LCOE means the project can produce electricity more cheaply. In 2026, competitive onshore wind LCOE ranges from $25-50/MWh depending on location and wind resources.
Capacity factor (CF) -- the ratio of actual energy output to theoretical maximum -- is the single most important variable in wind farm economics. It directly determines annual energy production (AEP), which drives all revenue projections. A wind farm with a 35% CF produces 75% more energy than one with a 20% CF, using the same turbines.
Small errors in CF estimation cascade through every financial metric. A 2 percentage point overestimate can swing NPV by tens of millions of dollars on a 100 MW project. This is why accurate wind resource assessment is the foundation of every bankable wind farm investment.
Typical capacity factors range from 20-35% for onshore wind in moderate climates to 40-55% for offshore wind in high-resource areas. The sensitivity table above shows exactly how CF impacts your project's returns.
Onshore CAPEX: $1,200-1,600/kW installed. Includes turbines (65-70% of cost), balance of plant, grid connection, and development costs. Costs have stabilized after post-pandemic supply chain pressures.
Offshore CAPEX: $3,500-5,000/kW for fixed-bottom; $5,000-7,000/kW for floating. Higher costs due to foundations, subsea cables, and marine installation, offset by stronger and more consistent wind resources.
OPEX: $35-60/kW/year for onshore, $80-120/kW/year for offshore. Covers scheduled maintenance, unplanned repairs, land lease, insurance, and management.
PPA Prices: $25-60/MWh depending on market, location, and contract term. Corporate PPAs have been a major driver, with tech companies and industrials contracting renewable energy directly.