Home Windmills and Tax and Energy Savings

While it’s rare to see a windmill powering a home in Chicago and its neighboring suburbs, Congress recently passed a thirty percent tax credit as an incentive for people to use home windmills for power. An increasing number of such windmills are popping up in rural areas.

How do home windmills work? Combined with electricity from your local electric company, home windmills are used to power your home. When there is little or no wind, the electricity kicks in. Home windmills are very expensive, and typically it takes years until you save enough money in utility bills to justify the cost of the windmill itself. However, because home windmills are so energy efficient, Congress is attempting to encourage their installation by providing a tax credit.

Unfortunately, the reality is that it is very difficult to install a home windmill in an urban or suburban area. Neighbors will object, zoning ordinances will not allow windmills, and even a person who is considering the installation for him or herself may not be entirely convinced that it’s the best way to go. Rural homeowners in Illinois however, may not only be more open to the idea of a home windmill, but they can also reap the benefits of the tax credit.