National Renewable Energy Laboratory 

Innovation for Our Energy Future 

A national laboratory of the U.S. Department of Energy

Office of Energy Efficiency & Renewable Energy

NREL is operated by Midwest Research Institute ● Battelle Contract No. DE-AC36-99-GO10337 

Overcoming Technical and 

Market Barriers for Distributed 

Wind Applications: Reaching the 

Mainstream 

Preprint 

H. Rhoads-Weaver 

eFormative Options LLC 

T. Forsyth 

National Renewable Energy Laboratory

To be presented at the Solar 2006 Conference 

Denver, Colorado 

July 7–13, 2006 

Conference Paper 

NREL/CP-500-39858 

July 2006 
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OVERCOMING TECHNICAL AND MARKET BARRIERS FOR 

DISTRIBUTED WIND APPLICATIONS: REACHING THE MAINSTREAM 

Heather Rhoads-Weaver 

eFormative Options LLC 

11824 Vashon Hwy SW 

Vashon, WA 98070 

hrw@eformativeoptions.com 

Trudy Forsyth 

National Renewable Energy Laboratory 

1617 Cole Blvd, MS 3811 

Boulder, CO 80401 

Trudy_Forsyth@nrel.gov 

ABSTRACT

The distributed wind industry is poised for rapid market 

growth in response to continuing energy price hikes and 

increased demand for on-site power generation. However, 

for distributed wind to reach its mainstream market potential, the industry must overcome several hurdles, primarily 

in system costs, interconnection and installation restrictions. 

A recent National Renewable Energy Laboratory (NREL) 

assessment of the five primary distributed wind turbine 

(DWT) market segments found that the largest expected 

increases are in the U.S. residential grid-connected wind 

market and the international “small-scale” community wind 

market. Together with farm, industry, small business, offgrid, and wind/diesel hybrid applications, the entire DWT 

wind market is expected to grow from an estimated 410,000 

units installed worldwide totaling 8,800 MW in 2005 to 

about 850,000 units totaling 100,000 MW by 2020. 

Technological advances are needed to bring the cost of 

energy of DWT to a level competitive with conventional 

generation sources, currently $0.05-0.12/kWh. Small and 

mid-sized wind turbines offsetting customer loads are typically sited in low wind speed regimes and experience low 

capacity factors, but increased sales may lead to higher 

penetration levels on relatively weak rural utility grids. This 

paper characterizes the principal DWT market segments and 

constraints related to economics, interconnection and utility 

acceptance, permitting challenges, and other critical barriers. It recommends research, policy and outreach efforts to 

address these obstacles for DWT to reach the mainstream. 

With large wind turbine and PV manufacturers scrambling 

to keep up with demand, this paper describes how the distributed wind industry can overcome long-standing stumbling blocks and play an important role both in the U.S. and 

internationally in supplying power near the point of end use. 

1. INTRODUCTION

Distributed wind energy systems provide clean, renewable 

power for on-site use and help relieve pressure on the power 

grid, while providing jobs and contributing to energy security for homes, farms, schools, factories, private and public 

facilities, and remote locations. America pioneered small 

wind technology in the 1920s, and it is the one renewable 

energy industry segment that the U.S. still dominates in 

technology, manufacturing, and world market share. 

A 2005 UK Department of Trade and Industry study found 

that “mini” wind turbines and other “microgeneration” 

technologies can deliver significant household carbon reductions. Aided by strong government support for product 

development and market incentives, new turbines from 

China, India and Europe are providing stiff competition for 

U.S. products both in overseas markets and domestically. 

The high cost of energy generated has historically been the 

most significant barrier to DWT market growth. DWT 

economics are highly variable, with reductions in total 

installed cost from the current range of $4-7/W to $2-3/W 

after incentives necessary for significant market expansion 

in the U.S. grid-connected market. This can be achieved 

through technology improvements as well as policy support. 

Drivers of market growth include financial incentives, 

favorable net metering, standardized interconnection policies, and high retail electricity rates. Key technical challenges include the lack of performance standards and ratings, grid integration, product availability and reliability, 

low wind regime technologies, installation and maintenance, 

and quiet operation. 

2. STUDY BACKGROUND

With the assistance of DWT suppliers, the American Wind 

Energy Association (AWEA) launched a web-based survey 

in late 2005 targeting small turbine manufacturers and 

retailers, distributed wind project developers, service technicians, component vendors, utility and tribal representatives, and state incentive program managers to seek input on 

key barriers and market drivers. Earlier in the year AWEA 

obtained 18 responses to a market survey circulated to 80 

small wind industry participants, representing a 20% response rate which included all of the principal U.S. small 

1
turbine manufacturers. AWEA broadcast the follow-up 

questionnaire to more than 600 DWT stakeholders involved, 

and received more than 200 responses including thorough 

answers from key industry leaders. 

The recent survey examined barriers and drivers for the key 

DWT market growth areas: grid-connected residential; 

schools/public facilities; farms and small businesses; remote 

off-grid/village power; wind/diesel hybrid systems; center 

pivot irrigation; water desalination; vehicle to grid; and 

other niche markets including telecom, military, and marine 

applications. It documented the required cost of energy to 

compete in these key markets, and the most common alternatives to wind energy. It explored technical challenges 

such as designing low-cost tower options, new power conversion equipment, complete turbine redesign, and reengineering specific turbine components. It also collected 

input on remedies to these barriers and the importance of 

various policy objectives designed to level the playing field. 

AWEA then assisted NREL in compiling more detailed 

sales data from manufacturers, including geographic breakdowns, estimates of grid-connected and off-grid applications, the number of homes and businesses using wind 

power on-site, and cost components for two selected market 

segments, grid-connected residential and “small-scale” 

community wind, summarized below in Table 1. 

For the purpose of this study, “small-scale” community 

wind, a subset of the larger community wind market, is 

defined as projects utilizing turbines 1 MW in nameplate 

capacity or less where a local entity has a significant financial stake in the outcome of the project. “Small-scale” 

community wind projects are typically connected to 13.8 kV 

or lower distribution lines, either behind the meter offsetting 

a portion or all of the electricity used on-site by a load in the 

community, or using a dedicated transformer with all energy 

sold to the interconnecting utility. 

3. CURRENT SITUATION

The federal Production Tax Credit (PTC) has fostered rapid 

growth in large-scale wind development with periods of 

stagnation due to the advance planning requirements of 

large projects and the timing of extensions of the PTC, 

which has expired three times since Congress first enacted it 

in 1992. This boom and bust cycle has caused apprehension 

among turbine suppliers interested in opening facilities in 

the U.S. as well as shortages of equipment, personnel, and 

business and legal expertise for community-scale projects. 

Large wind turbines are essentially unavailable for small 

projects until 2008, after the current PTC expires. Most of 

the large turbine manufacturers have minimum order requirements, restricting access to community developers. 

This situation is leading some community wind project 

proponents to consider mid-sized 50-900 kW turbines as a 

viable alternative to the currently more cost-effective multiMW wind turbines. High thresholds on net metering rules 

and feed-in tariffs assist in serving medium-sized loads such 

as schools, many businesses and small manufacturing facilities. Only a few U.S. and foreign suppliers currently have 

products available to fill this growing market niche. 

Moreover, elected officials across the U.S. and internationally are showing increased support for small-scale and 

community wind. The 2005 Federal Energy Policy Act 

established Clean Renewable Energy Bonds allowing coops, government agencies, tribes, non-profit organizations 

and other entities not eligible for the PTC to apply for lowinterest bonds to finance wind and other renewable resources for local economic development. Minnesota, Iowa, 

Washington state and Ontario have also recently passed 

incentives for small and community-scale wind projects. 

To date about 270 MW of community wind projects are 

installed in the U.S., representing $250 million in investment in rural communities. Of these, about 110 MW meet 

the definition of “small-scale” community wind utilizing 

wind turbines 1 MW or less. At least 440 MW of new 

community-owned wind projects are in the advanced planning states in the U.S., however project developers are 

expecting to utilize turbines larger than 1 MW for nearly all 

of this future capacity due to their better economics. 

John Deere has recently provided equity investments in 

several wind energy projects in rural areas both in the U.S. 

and abroad, creating a business unit to provide project 

development, debt financing and other services to farmers 

wanting to harvest their wind resources. Supporting the 

company’s goal of helping customers “improve their profitability and productivity,” Deere’s new initiative signifies 

major growth potential in the community wind market in 

attracting a leading financial service provider. 

The EU has been the historic leader in community wind, 

with about 80% of all installed wind turbines considered 

community applications. Since Europe is by far the largest 

market for community wind, assuming 25% of these turbines are 1 MW or less with an average turbine size of 750 

kW, 11,000 turbines totaling 8.1 GW is a fair estimate of the 

current international market for this sector. 

Grid-connected residential wind installed capacity has 

historically been less than 5% of the total sales of small 

turbines (up to 100 kW). However, DWT manufacturers 

expect that portion to grow to more than 20% by 2020. The 

U.S. Department of Energy Renewable Electric Plant Information System (REPiS) database has documented nearly 

1,200 small wind turbines totaling 16 MW as of 2005 in 45 

states. We estimate that about 70% of these documented 

systems and 40% of the capacity are grid-connected residen2
TABLE 1: SELECTED DWT MARKET SUMMARY INFORMATION 

2005 150 Units 110 MW 2005 1,800 Units 9 MW

2010 220-500 Units 160-380 MW 2010 5,100-7,400 Units 29-44 MW

2015 320-1,700 Units 240-1,300 MW 2015 10,000-26,000 Units 72-211 MW

2020 470-6,000 Units 350-4,500 MW 2020 18,000-92,000 Units 170-1,000 MW

1. Midwest (MN, IA, NE, TX, ND, SD, IL) 1. West Coast (CA, WA)

2. Northeast & Mid-Atlantic (incl. MA, NY, VT) 2. Northeast & Mid-Atlantic (NY, MA, PA, VT)

3. West (CO, MT, CA, OR, WA, AK) 3. Midwest/Central (TX, OH, MN, IA, WI, CO)

2005 11,000 Units 8.1 GW 2005 1,100 Units 5.5 MW

2010 17,000-29,000 Units 13-22 GW 2010 2,500-3,300 Units 14-19 MW

2015 28,000-79,000 Units 21-59 GW 2015 4,800-11,000 Units 34-86 MW

2020 45,000-210,000 Units 34-160 GW 2020 8,700-37,000 Units 82-410 MW

1. Europe (Germany, Spain, Denmark, Norway, Netherlands) 1. Asia (Japan, China, India)

2. Asia (China, India, Russia) 2. Europe (UK, Spain, Italy, Germany, Netherlands, Greece)

3. South America/Central America, Africa, Canada 3. Central & South America

1. Turbine availability 1. Economics (installed cost, COE, payback period)

2. Economics 2. Lack of incentives (financial and policy, state and federal)

3. Interconnection 3. Zoning, permitting, neighbor perception, public awareness

4. Permitting/Siting 4. Connecting to the grid (interconnection stds, REC issues)

1. Grid interconnection and integration 1. Lack of performance standards, testing and ratings

2. Turbine and tower options 2. Product reliability

3. Installation and maintenance 3. Technologies for low wind regimes

4. Performance projections 4. Sound levels / quiet operation

1 MW or less 1 kW to 25 kW, Market void for 5 kW and 15 kW turbines

1. "SMALL-SCALE" COMMUNITY WIND* 2. GRID-CONNECTED RESIDENTIAL WIND**

120V to 240V, 60 Hz AC, the standard electrical service of most 

residences

540 V to 660 V AC, typically connecting to distribution lines of 

13.8 kV or less

** Grid-connected residential sector is expected to grow from <5% of total small DWT market ( < 100 kW) to >20% by 2020. 

1.1 Domestic Market Potential (cumulative installations) 1.2 Domestic Market Potential (cumulative installations)

2.1 Regions of Specific Interest 2.2 Regions of Specific Interest

3.1 International Market Potential (cumulative installations) 3.2 International Market Potential (cumulative installations)

4.1 Regions of Specific Interest

* "Small-scale" community wind sector ( < 1 MW) is estimated to be about 20% of 2005 EU wind market. 

4.2 Regions of Specific Interest

5.1 Key Market Barriers 5.2 Key Market Barriers

7.1 Expected Turbine Size Range & Coupling 7.2 Expected Turbine Size Range & Coupling

6.1 Key Technical Barriers 6.2 Key Technical Barriers

tial applications. Based on available data, we estimate that 

the cumulative grid-connected residential wind installed 

capacity as of 2005 is about 2,900 units totaling 14.5 MW 

worldwide, with 1,800 units totaling 9 MW in the U.S. 

3.1 Market Challenges

Key factors contributing to turbine system costs, the most 

significant barrier to market adoption and growth of DWT, 

include turbine size (rotor diameter, rated capacity), average 

wind speed at hub height, power output control/limitation 

technology, and applied grid control technology. External 

factors include infrastructure and transport logistics costs, 

inadequate net metering, permitting costs and time, and 

other location-specific conditions. From the perspectives of 

power generation potential (kWh/kW), return on investment, and cost of energy (cents/kWh), current designs of 

small and mid-sized turbines are at a disadvantage compared with larger utility-scale wind turbines as they are 

relatively more expensive to manufacture (both materials 

and labor) and their limited hub heights (due to cost, setback 

3
requirements, aesthetics, etc.) result in comparatively less 

energy production. In addition, their low manufacturing 

volume impede cost reductions with series-scale production. 

The lack of effective performance standards, testing and 

consumer ratings for DWT contribute to product reliability 

concerns in the market. Inconsistent interconnection standards and the reluctance of utilities to adopt DWT distributed generation programs further constrain the market and 

hinder market efficiencies. Dealers and installers increasingly report that the insurance industry is requiring additional insurance coverage for DWT owners. Finally, small 

wind turbines are not consistently addressed in state renewable portfolio standards (RPS), incentive programs and 

consumer education campaigns. 

3.2 Utility Acceptance of DWT

The DWT market is primarily rural homeowners, farms, 

small businesses and schools. Many DWT sites appropriate 

for wind power are served by rural electric co-ops (RECs), 

which typically view net metering and distributed generation as cross-subsidies and inconsistent with co-op principles that members should share equally in the investment, 

risk and benefits of the co-op. Many RECs believe that net 

metering results in reduced co-op revenue while the fixed 

costs remain, and that the co-op’s other consumers ultimately subsidize the self-generating consumer. While RECs 

do hold a large territory, many other utilities in more populated areas do not oppose net metering. However, most 

utilities still require significant education, softening of 

interconnection requirements, and generally an improved 

understanding of the benefits of capturing consumer investments in DWT. 

4. MARKET ASSESSMENT

4.1 Mid-Sized Community Wind Market Potential

The U.S. Energy Information Administration forecasts that 

total domestic wind capacity will grow at an average annual 

rate of 11% from 2005 to 2010, and then 3% from 2010 to 

2020. However, from 1998 to 2003 installed wind capacity 

grew an average of 28% per year, and growth from 2004 to 

2005 was a record 35%. In consideration of recent trends in 

the community wind market, we estimate a conservative 

annual U.S. lower bound growth rate for “small-scale” 

community wind through 2020 to be 8%, although with 

favorable policies, economic conditions and sufficient 

availability of competitively priced mid-sized turbines, its 

average annual growth could be as high as 28%. 

From 1995 to 2005, Europe realized average annual growth 

of 32% in wind capacity and 22% in the number of installations. Using this historical information and recent trends, we 

estimate the future international market for “small-scale” 

community wind to have a lower bound annual growth rate 

of 10% and an upper bound of 22%. The slightly higher 

lower bound international estimate compared to the U.S. 

rate reflects the fact that the EU community wind market is 

already firmly established. The somewhat smaller upper 

bound estimate reflects the maturity and overall direction of 

the EU market toward large off-shore wind development. 

Germany and Spain are of particular interest for community 

wind, currently leading the EU in both growth and installed 

capacity. Together these two countries accounted for 58% of 

the EU’s total wind capacity growth in 2005 and 70% of the 

EU’s total installed capacity. Canada is also showing signs 

of following the lead of nearly a dozen European nations in 

enacting feed-in tariff laws to support wind generation. 

4.2 Grid-Connected Residential Wind Market Potential 

The small DWT industry is increasingly focused on the rural 

residential market, with new attention on the large-lot suburban residential market. A 2004 survey of readers of Home 

Power Magazine (3,573 respondents) indicated that 38% 

intended to utilize renewable energy in a rural home, 27% in 

a suburban home, and 16% in an urban home, with more 

than 40% of respondents planning to install wind turbines. 

The growth potential of the DWT market presents a unique, 

timely opportunity. Moreover, trends show that growth may 

occur at significantly increased rates if critical market barriers are overcome. The 2006 AWEA-NREL market survey 

found that the leading U.S. DWT manufacturers are projecting an average annual growth rate of 32% for the U.S. gridconnected market through 2020, with their potential domestic market share as high as 41,000 units totaling 130 MW in 

2020. These aggressive projections signify confidence that 

the DWT market is poised for strong growth. 

AWEA’s 2005 study found that in ideal market conditions 

(with sufficient policy support), annual U.S. sales of DWT 

could reach $55M by 2010. The same study forecast a slow 

growth scenario based on scaled-back projections from only 

the established industry players, estimating annual U.S. 

sales at $27M in 2010 if the key barriers are not addressed; 

however, some industry members believe that these projections are too conservative. With increased monitoring of 

these market trends, it is becoming increasingly evident that 

the DWT industry has the potential to become one of the 

leading renewable energy distributed generation industries. 

Based on these studies and current industry trends, we 

conservatively estimate cumulative U.S. on-grid residential 

wind turbine installations to have a lower bound growth rate 

of 9% and an upper bound growth rate of 28% through 

2020, with the average turbine size increasing. The criteria 

for states with strong DWT markets listed in section 2.2 of 

Table 1 include high residential electricity rates and/or 

loads, adequate wind resources, financial incentives, streamlined permitting requirements, positive public perception of 

4
small turbines, state or utility public education and awareness campaigns, and simplified interconnection processes. 

U.S. manufacturers of DWT are in an excellent position to 

take advantage of the international DWT market. AWEA 

estimates that more than 40% of U.S.-manufactured DWT 

are exported. Currently, two U.S. manufacturers are the 

world’s recognized market leaders in sales volume. A recent 

study conducted by Marbek Resource Consultants Ltd. 

indicated that 96% of reported sales in Canada are attributed 

to three U.S. manufacturers. The international export market, therefore, presents a considerable economic opportunity 

for U.S. manufacturers, both for on-grid and off-grid DWT. 

The 2006 DWT market survey conducted for this study 

confirms a robust international export growth outlook. The 

leading U.S. DWT manufacturers are projecting an average 

annual growth rate of 34% for the non-U.S. grid-connected 

market through 2020, with a potential U.S. export market as 

high as 22,000 units totaling 66 MW in 2020. 

Other estimates of the international DWT market come from 

AWEA’s 2005 DWT market study and a 2002 study by 

Garrad Hassan Consulting. The AWEA study estimates that 

the international small wind market is roughly the size of 

the total domestic DWT market. UK-based Garrad Hassan 

projects a five-fold increase from 2002 global small wind 

sales, equating to 150 MW/year and 150,000 turbines/year. 

A number of countries have shown considerable interest in 

DWT technologies. The 2005 UK “microgeneration” study 

anticipates up to 5 GWh of energy from 1.5 kW residential 

wind by 2030, with a doubling by 2050 and with small wind 

supplying 4% of UK’s electricity requirement. The study, 

commissioned by the UK Department of Trade and Industry, estimates an upper bound of nearly 120 MW and a 

lower bound of 20 MW of installed DWT capacity by 2020, 

depending on the amount of government support. 

The Marbek study concludes that the Canadian DWT market requires incentives in four areas: market development 

(federal rebate, provincial incentives), policy development 

(net metering, streamlined environmental processes), technology development (standardized testing, demonstration 

program), and education and awareness-raising (model 

interconnection agreements, installation guidelines for 

siting, zoning, permitting, interconnection). 

The Lawrence Berkeley National Lab reports that China 

manufactured 12,000 small wind turbines in 2000, and that 

the Chinese market has been strongly supported by government policies and incentives. In February 2005, China 

passed a groundbreaking law to promote renewable energy. 

While China has a great potential for wind, as in much of 

the world, its primary market is off-grid rural electrification. 

In consideration of these studies, the large DWT market 

share held by U.S. manufacturers and our familiarity with 

current industry trends, we conservatively estimate lower 

and upper bound international annual growth in gridconnected residential wind installations at 11% and 28% 

respectively. The lower rate is slightly higher than our U.S. 

estimate for this sector due to the likelihood that new international markets will continue to emerge and expand. We 

expect the average turbine size for the grid-connected residential wind sector to increase globally due to the availability of new products. 

4.3 Correlations to PV

Considerable market information is available for the PV 

industry that could be useful to the DWT industry. Examples include trends in grid-connected PV installations and 

forecasts, cost-of-energy, consumer demographics, purchase 

criteria, effectiveness of incentives and market drivers, and 

potential applications and market size for hybrid wind/PV 

systems. This insight can help inform marketing and technology decisions for the potentially large suburban residential market targeted by some DWT vendors. 

The PV industry also has significant public support and 

resources to advance policy incentives, obtain research 

funding, and conduct public awareness campaigns. Coordination between the DWT and PV industries due to similar 

interconnection technologies and overlapping target markets 

could prove effective for developing recommendations 

beneficial to both industries. In addition, market growth can 

be anticipated in hybrid wind/PV systems. 

5. CONCLUSIONS

The market for residential, farm and community wind 

projects is substantial and growing, attracting increasing 

attention from policy makers, community groups and economic development professionals. However, the U.S. DWT 

market, and U.S. participation in the international small and 

community wind markets, are facing major market and 

technical constraints that need focused attention. 

Actively engaging federal, state and local governments in 

addressing key economic, policy, permitting and public 

education barriers can ensure the realization of the energy 

security, self-sufficiency and reliability that DWT promises. 

The DWT market will be vitally enhanced by costcompetitive and easily obtainable equipment, with production rates keeping up with growing market demand. Technology advances with rotors, towers, and controllers can 

substantially improve DWT performance as well as ease of 

installation and maintenance. Industry standards, consistent 

policy and financial incentives, and public education campaigns will all help enable DWT to compete vigorously in 

the distributed generation market. 

5
Based on our analysis of critical path technologies, we 

recommend research and outreach activities in the following 

high priority areas to enhance market growth and aid U.S. 

manufacturers in competing in the DWT market space: 

• Advancing innovative designs for small and mid-sized 

turbines, rotors and towers optimized for low winds addressing grid interconnection, productivity, installation 

and maintenance issues; 

• Supporting performance and rating standards development and reliability testing; 

• Designing, testing and certifying advanced remotemonitored controllers to simplify grid interconnection 

processes and support weak rural distribution systems; 

• Developing technical “windsmith” training programs to 

help reduce installation delays and turbine downtime; 

• Developing easy-to-use computer tools for analyzing 

project economics and modeling wind resources to assist with micro-siting, seeking low-cost financing, and 

taking advantage of incentives; 

• Documenting benefits for utilities of in promoting local 

investment in DWT; and 

• Promoting model zoning ordinances and educating 

local planning officials to aid in adoption of responsible 

siting requirements while streamlining the approval of 

small and mid-sized wind turbines. 

 

Distributed wind generation would benefit from technology 

enhancements and public awareness programs to shift the 

business paradigm of RECs to include support services for 

members generating wind power as a “cash crop.” Co-ops 

could aggregate wind power from members for sale to 

outside parties, upgrading their extensive distribution and 

transmission infrastructure for bi-directional power. Both 

private utilities and co-ops could offer small wind turbine 

sales, leasing, installation, and maintenance for customers. 

 

The DWT industry would also benefit from more detailed 

market analysis examining customer motivations. With the 

emergence of more accurate wind resource maps, new low 

wind turbine technologies, updated census data, and analysis 

of economic and social market drivers, an in-depth market 

study focused on end-user purchase decisions would provide 

valuable data to inform research, product development, 

marketing and policy decisions. 

Oversight of performance certification and compliance 

testing is urgently needed to address critical reliability and 

credibility issues in order to support major expected growth 

in the grid-connected residential wind market. Third party 

researchers familiar with the issues of both inverter and 

turbine manufacturers are in the best position to bridge the 

gap and provide innovative system solutions. On the other 

hand, without credible, widely used DWT performance and 

reporting standards, unsafe or poorly performing systems 

could damage the reputation of the entire wind industry. 

Widespread deployment of small wind turbines can increase 

the public’s familiarity with wind energy generation, attract 

mainstream media coverage, and pave the way for local 

community support for larger wind developments. Small 

turbines, in particular installations at schools and other highvisibility locations, can become an important asset in reducing fears about unfamiliar technology, which in turn can 

reduce the unpredictable nature of siting and permitting 

large wind projects. Small turbines can be installed in selected neighborhoods to increase public awareness of residential wind options, which can also help utilities increase 

customer participation in voluntary green power programs 

and provide local “advertisements” of utilities’ green power. 

The international market, and more importantly the international impact on the growth of the DWT market, is much 

larger than the capacity estimates indicate. The added MWs 

of distributed electricity can make a huge difference to 

people around the world. Energy security and grid stability 

can be greatly improved by spreading distributed generation 

over a broad area. Efforts to enhance the viability of the 

DWT industry will have major global benefits in securing 

future energy supplies and meeting increased demand for 

decentralized, affordable clean power. Mainstream adoption 

of DWT can enhance awareness and support for the entire 

wind energy industry. 

6. ACKNOWLEDGMENTS

The authors would like to thank the more than 200 DWT 

stakeholder survey respondents and our co-authors who 

provided invaluable industry insight for this study, including: Amy LeGere, NetGenuity; Brian Antonich & Lisa 

Daniels, Windustry; Jonny Holz & Steve Grover, 

ECONorthwest; Craig Hansen, Windward Engineering; 

Mick Sagrillo, Sagrillo Power & Light; Ed Kennell, Clean 

Energy Products; Thomas Wind, Wind Utility Consulting; 

and Ron Lehr, American Wind Energy Association. Other 

contributors included Meg Gluckman, eFormative Options; 

Thom Wallace, Ecofusion Multimedia; Larry Sherwood, 

Interstate Renewable Energy Council; Robert Preus, Abundant Renewable Energy; Michael Bergey, Bergey WindPower; Jennifer Oliver and Andy Kruse, Southwest Windpower; Henry DuPont, Lorax Energy; Lawrence Mott, Earth 

Turbines; and John Vanden Bosche, Chinook Wind. 

7. REFERENCES

1. Marbek Resource Consultants. 2005 Survey of the 

Small (300 W to 300 kW) Wind Turbine Market in Canada. 

2. UK Department of Technology and Industry. 2005 

Potential for Microgeneration Study and Analysis. 

3. Wiser, R. 2004. Lawrence Berkeley National Laboratory. Building a Market for Small Wind. 

4. Bolinger, M. 2004. A Comparative Analysis of Community Wind Power Development Options in Oregon. 

Prepared for the Energy Trust of Oregon. 

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4. TITLE AND SUBTITLE

Overcoming Technical and Market Barriers for Distributed Wind 

Applications: Reaching the Mainstream; Preprint 

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6. AUTHOR(S)

H. Rhoads-Weaver and T. Forsyth 

5f. WORK UNIT NUMBER

7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES)

National Renewable Energy Laboratory 

1617 Cole Blvd. 

Golden, CO 80401-3393 

8. PERFORMING ORGANIZATION 

REPORT NUMBER

NREL/CP-500-39858 

10. SPONSOR/MONITOR'S ACRONYM(S)

NREL 

9. SPONSORING/MONITORING AGENCY NAME(S) AND ADDRESS(ES)

11. SPONSORING/MONITORING 

AGENCY REPORT NUMBER

12. DISTRIBUTION AVAILABILITY STATEMENT

National Technical Information Service 

U.S. Department of Commerce 

5285 Port Royal Road 

Springfield, VA 22161 

13. SUPPLEMENTARY NOTES

14. ABSTRACT (Maximum 200 Words)

This paper describes how the distributed wind industry must overcome hurdles including system costs and 

interconnection and installation restrictions to reach its mainstream market potential. 

15. SUBJECT TERMS

distributed wind; small wind electric systems; system costs; utility interconnection 

16. SECURITY CLASSIFICATION OF: 19a. NAME OF RESPONSIBLE PERSON 

a. REPORT 

Unclassified 

b. ABSTRACT 

Unclassified

c. THIS PAGE 

Unclassified

17. LIMITATION 

OF ABSTRACT

UL 

18. NUMBER 

OF PAGES 

19b. TELEPHONE NUMBER (Include area code)

Standard Form 298 (Rev. 8/98) 

Prescribed by ANSI Std. Z39.18