Written by Sarah Baxley Scott, Live Power Consultant

The Wind Production Tax Credit and its impact on the cost of wind production

The Wind Production Tax Credit (PTC) is available to utility-scale wind projects, and provides a tax credit of $10-20 per MWh of production for the first ten years of operation. As such, the marginal cost of production for eligible projects falls below $0/MWh; for example, if a wind project receives a tax credit of $19/MWh, the project will produce when prices at its local node are above $(19)/MWh.