Investing in wind turbines Print E-mail
A wind turbine is a different investment asset compared to e.g. real estate. A wind turbine is an operating asset, which – all things equal – decreases in value over time. It is therefore imperative that the wind turbine can generate enough liquidity to cover interest, installments and operating costs – and to earn a satisfactory profit to the investor.

Generally, the advantages of wind turbine investments can be listed in the following key selling points:

Political backup – Most European countries have sent a clear political message that they support renewable energy. As a consequence Germany has for example established a system, whereby the German utility companies are obliged to purchase all electricity produced by wind turbines at a high feed-in tariff, which is fixed for up to 20 years. Moreover, the growing debate about the environment and CO2 reduction increases the demand for green investments.

Favorable tax rules – investors in wind turbines can benefit from favorable Danish tax rules, whereby wind turbines can be depreciated by a variable percentage of up to 25 % per year. The variable and rather high percentage makes a wind turbine ideal for optimizing the investor’s tax situation in every year. Tax deficits arising as a result of taxable depreciations can be deducted in the investor’s personal income, thereby saving top bracket tax (“topskat”).

Not sensitive to market trends – the wind blows all year round and is not affected by economic down turns, financial crisis etc.

Both short and long term – Generally, wind turbine investments generate positive liquidity from day one and throughout the entire investment period. The result is thus positive both from a short and long term perspective.

Risk mitigation – A wind turbine investment is an excellent alternative to e.g. shares, property investments and other investments. A wind turbines investment helps investor’s to balance the risk in their overall investment portfolio.