Making Money Out of Thin Air Finding a good location with a reliable wind resource is the single best way to ensure lower costs from wind energy. But other methods exist to help decrease the total delivered cost of wind energy. For example, lowering finance costs provides a second way to reduce the cost of energy from wind. Public utilities often qualify for low-cost financing options. They can also take advantage of other methods such as emissions credits and incentives that lower the total costs of wind energy developments.
Municipal bonds are one low-cost financing option available for municipal utilities.
These certificates of debt are appealing to investors because all the interest earned is tax-free. Because municipal bonds are tax-free, financing rates tend to be lower. Wind energy developers also use accelerated depreciation available through the Tax Reform Act of 1986. Generally, this depreciation allows for a 5-year, double declining balance for wind and other types of renewable facilities. In addition, wind developers generate revenue by selling tradable emissions allowances or credits.