The cost of wind energy has become a hot topic as the industry matures and renewable energy projects become increasingly prevalent. While wind farms are now commonplace, the initial investment in a wind turbine remains substantial, factoring in technology, construction, and ongoing operational expenses. So, How Much Does A Windmill Cost in 2025?
Estimating the cost of a wind turbine is not straightforward. Current projections place offshore turbine costs at around $1.5 million per megawatt (MW) of power generated. This would put a 10 MW turbine at approximately $15 million. However, numerous variables influence the final price.
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Header image credit: GE Vernova
This article breaks down the factors determining the cost of a wind turbine, explores their long-term profitability, and evaluates the worth of the upfront investment.
The increasing development of offshore wind farms in recent decades has been further supported by the Biden Administration’s initiatives. Despite potential political shifts, the momentum of wind energy and the broader renewables market is undeniable. The global energy transition is well underway, ensuring the United States remains a significant player. The balance between onshore and offshore wind energy will continue to impact the market and, specifically, the initial cost of a wind turbine.
Comparing the costs of different wind turbine models can be challenging. Estimating offshore wind turbine costs is more complex than onshore costs, and the price of turbines for onshore wind farms varies significantly based on site-specific conditions.
Calculating an “average” cost for a wind turbine in 2025 requires considering multiple variables and scenarios. Let’s explore some of these factors.
In 2024, some manufacturers hinted at reducing their number of models to improve profitability and engineering reliability. Understanding the dynamics of the wind energy market provides valuable context for understanding how wind turbine costs are determined.
Are Wind Energy Costs Really Decreasing? Is Wind Energy Becoming Too Affordable?
Recently, wind turbine manufacturers, including Siemens, have voiced concerns that wind energy costs are becoming too low to support continued market development and growth. Rising costs and government pricing structures pose ongoing challenges.
In 2022, Nordex increased its turbine prices by roughly 12% due to rising costs and interest rates, and other manufacturers followed suit. Wind turbine prices stabilized somewhat in 2023. Nordex, based in Germany, reported an average selling price of €890,000/MW (approximately $965,000/MW USD) mid-year. [1]
Siemens’ Tim Dawidowsky famously stated in May 2023, “it’s all about cash,” reflecting a desire for European turbine manufacturers to receive more revenue. This sentiment was discussed in the Uptime Podcast episode concerning high-altitude turbines. Wind energy costs, including those of nearly every component within a wind turbine, are influenced by a multitude of global factors.
Energy costs are particularly difficult to pinpoint. Varying national energy financing approaches create an uneven playing field. While some European nations directly control energy development, and the United States has a history of incentives and subsidies, accurately determining costs, profits, and losses, and comparing energy costs across countries remains a challenge. Even “simple” costs, such as blade and nacelle structures, are subject to fluctuations based on political policies and anticipated future prices.
The Biden administration’s Inflation Reduction Act (IRA) allocated billions to green energy incentives from 2021 to 2024, with ongoing effects. For weekly discussions on wind industry business and technology, tune into the Uptime Wind Energy Podcast here.
Where are the Most Financially Viable Wind Projects Located?
Philip Totaro, founder of IntelStor, addressed this question in the May 7, 2024, edition of Recharge News. Totaro is a regular panelist on The Uptime Wind Energy Podcast.
What is the Initial Cost of a Wind Turbine?
Commercial wind turbines typically cost millions of dollars per turbine.
Wind turbines generate significant electricity, which is sold to local power utilities for distribution to homes and businesses.
Initial Wind Turbine Cost Breakdown
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Why Do Costs Vary So Widely Around the World? It’s Complex.
Energy projects globally, from Australia to Brazil to Canada to the UK, are developed and funded differently due to varying governmental structures. Several other intricate issues make determining the cost of a wind turbine more complicated than a standard accounting exercise.
Countries may “adjust” the cost of materials, labor, and land through artificial wage reductions, tariffs, and taxes. In the US, initiatives like the Jones Act can initially increase wind turbine manufacturing costs but are intended to enhance the long-term value of the country’s wind energy market. Similar political constraints exist in other countries. Since 2022 and continuing into 2025, the Jones Act has significantly impacted offshore wind turbine costs. An August 2024 podcast episode explored some of Orsted’s financial challenges. (Orsted is based in Denmark.) For more insights into the business aspects of wind turbine costs and industry growth, listen to the Uptime Wind Energy Podcast weekly.
Wind Turbine Maintenance Costs
Ongoing maintenance is an essential expense after construction:
- 1-2 cents per kilowatt-hour produced, or
- $42,000 – $48,000 annually
These long-term investments should, ideally, continue to pay for themselves over time.
A wind turbine study based on German data indicates that these costs can average 1-2 Eurocents per kilowatt hour (kWh) produced.
How Do Operation & Maintenance Requirements Impact Wind Turbine Cost?
Operation & maintenance (O&M) typically includes:
- Insurance
- Land costs, rent, and taxes
- Service, repair, and spare parts
- Administrative tasks
- Power (for operation)
- Miscellaneous
These recurring costs are generally outweighed by the turbine’s energy production.
Repairs can significantly reduce capacity, and lightning strikes can pose a substantial problem.
Although turbine blades are equipped with lightning protection systems, they are often inadequate.
Additional lightning protection is particularly crucial for offshore wind turbines, where repair worker transportation is costly and time-consuming.
Products like segmented lightning diverters can provide enhanced protection against lightning strike damage.
How Much Electricity Does a Wind Turbine Generate?
Having discussed costs, let’s address the central question: How much electricity does a wind turbine produce?
Wind turbines are measured in megawatts (MW), indicating their electricity-generating capacity.
One megawatt = 1,000,000 watts of power. While one megawatt can power approximately 1,000 homes for a month, wind turbines rarely achieve their rated capacity due to fluctuating wind speeds.
Wind Turbine Size and Electricity-Producing Capacity
Larger wind turbines cost more but generate more electricity with larger nacelles and turbine blades.
According to Statista, the average rotor diameter for onshore wind turbines has increased to 129 meters (423 feet).
Common commercial wind turbine sizes in megawatts:
- 1.5 MW (onshore)
- 2.5 MW (onshore)
- 4 MW (onshore)
- 6-8 MW (offshore)
- Up to 18 MW (The MingYang Smart Energy MySE 18.X-280 is currently the world’s largest offshore wind turbine)
Offshore wind farms utilize larger turbines due to the high installation and electricity transportation costs, as well as the increased efficiency gained from consistent, higher wind speeds.
Constructing a single, larger turbine is often preferable to multiple smaller ones, simplifying construction and reducing the number of required towers and anchoring systems.
Wind Speed & Direction Affect “Capacity Factor” in Electric Production
A turbine can produce at its maximum capacity at full wind speed. A 2.5 MW turbine will generate 2.5 MW of power at peak wind speed.
However, wind is rarely constant.
Due to variations in wind speed and direction, overall averages are typically lower, ranging from 30-40% for onshore turbines and up to 65% (or higher in rare cases) for offshore turbines.
How Much Revenue Does a Wind Turbine Generate From Electricity?
While a wind turbine has a maximum rated capacity, its actual electricity production is determined by its “capacity factor” or “load factor,” which is a percentage of this maximum.
The chart below shows numbers based on the typical sale price of electricity generated by wind turbines (2019 data). As turbine technology advances, the price of this power, sold back to the electrical grid, has decreased.
The sale of electricity is how wind turbines recoup their costs and contribute to renewable energy.
The goal is for turbines to achieve a higher capacity factor, resulting in greater electricity production. While many wind farms globally are heavily subsidized, those in the US and North America operate more like businesses.
Many US wind farms compensate private landowners for land use and contribute significantly to the broader community through direct investment, job creation, and tax payments. Learn more about how US wind farms contribute to their communities in this overview featured on the Uptime Wind Energy Podcast in 2024.
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Additional Wind Turbine Questions & Answers
Here are answers to some common questions about wind turbines, including wind turbine costs, specifications, and more.
Feel free to leave your questions below, and we’ll update this article with our answers!
The towers on most commercial wind turbines range from 200-260 feet tall. Including the blades, which are often over 100 feet long, the total height reaches well into the 300s. The Gamesa G87 model wind turbine’s blades reach a height of 399 feet.
Wind turbine blade tip speeds commonly range from 120-180 miles per hour, varying with wind conditions. Despite their enormous size (with blades exceeding 100 feet), they appear to spin slowly, but in reality, the blade tip speeds are very high.
Around $1,300,000 USD per megawatt. A typical wind turbine has a 2-3 MW capacity, costing between $2-4 million. Operation and maintenance add another $42,000-$48,000 per year, according to wind turbine operational cost research. See the National Renewable Energy Laboratory’s website for the most recent (December 2022) Cost of Wind Energy Review.
Yes, and these smaller turbines can now cost less than $1000. Energy production depends greatly on the size, specifications, and wind conditions of a home, and some homes are unsuitable for a turbine. Wind farms are carefully located in windy, often harsh conditions, as high winds are common in places people avoid living. Consistent, strong winds are necessary to make installing any wind turbine financially viable. New turbine designs are continuously proposed and tested.
Unfortunately, yes, but they are not the biggest threat to bird populations. Cats and cell phone towers are far more deadly. This article provides more information: https://www.usatoday.com/story/money/business/2014/09/15/wind-turbines-kill-fewer-birds-than-cell-towers-cats/15683843/.
The number varies significantly depending on size, wind conditions, blade length, and average home energy consumption. A typical wind turbine can power 1000-2000 homes in a year. One megawatt of energy production capacity powers about 1000 homes, and many onshore wind turbines have a 2-3 MW capacity.
The capacity factor, or load factor, is the actual power generation over time, compared to the theoretical maximum a turbine could produce. Because wind turbines cannot maintain peak production at all times due to changing wind conditions and downtime for service, considering the capacity factor is crucial when estimating a turbine’s expected annual power production.
Most recent update May 30, 2024. Original article by Dan Blewett published December 20, 2021. Edited by Dan Blewett and Diane Stresing. The most recent and substantive changes since original publication date are noted below.
[1] (New citation, May 2024 update) https://www.windpowermonthly.com/article/1829900/nordex-sells-16gw-wind-turbines-pricing-holds-steady-q2#
- The largest offshore wind turbines were updated to 18 MW.
- The National Renewable Energy Laboratory’s website was added to the frequently asked questions linking to the most recent (December 2022) Cost of Wind Energy Review.
- Statistica’s latest figures on the Global Wind Power Market Statistics and Facts were reviewed in 2023 and 2024 when the latest figures available for most stats were based on a report completed 2021, available here. In January 2025, additional information was referenced from the Global Wind Energy Council’s report based on 2023 data.
- References to recent podcasts and articles have been added.
- This article may be updated periodically and substantive changes will be noted here.
- This article was updated on January 5, 2025, to include some of the latest (2024) wind energy analyses and opinions from global data analytics and solution provider Wood Mackenzie
- This article was previously on September 30, 2024 to include additional complications of breaking down wind turbine costs in various countries due to tariffs, subsidies, and other financial/political differences around the world.
