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Tilting at Windmills

BBC NEWS | UK | Wind turbines save '£10 a year'

Many people would save just £10 a year on their electricity bill by installing a wind turbine on their roof, according to a leading turbine technology firm.

This means that it would take 150 years for turbines- costing £1,500 - to save enough money to pay for themselves.

Did Dave ever get round to putting one up to show his sound grasp of economics and investment returns?

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The Present Value of a revenue stream of £10 a year is £140 at a discount rate of 7% (and £200 at a rate of 5%). Spending any more than this to obtain that revenue stream is a waste of money.

Or, to put it another way, 150 years' worth of tenners is worth about £210 at a discount rate of 5%. At 7% it's worth a measly £150.

Sorry folk, Stern said you must use a ZERO discount rate to save the planet.

For the boy Cameron, the investment is not about saving money or the planet, it is an investment in power of the political variety. Personally, I doubt that the number of people who will vote for him because he has a wind turbine and would not vote for him otherwise does not justify the expense. Especially when you take off the votes of those who have become convinced by these and other silly stunts that he is a twat not fit to be prime minister.

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