What is wind energy and how efficient is it for my business?
Wind power now accounts for a third (33%) of British electricity generation on a given day, having generated over 85 TWh in 2025. Wind power is a tried and trusted method that businesses and homes alike have been using for hundreds of years in one way or another.
For most UK SMEs, wind will only be realistic if you have plenty of open land in a windy location, such as farms, rural industrial sites or exposed coastal premises. So it’s important to check whether your site is suitable before you invest.
If you're without suitable land, your business could still benefit from wind energy indirectly by choosing green tariffs backed by wind and other renewables.
Let's take a closer look at these towering giants, how they really work, and what smaller-scale options are available.
Five-point summary on wind energy and turbines for business
- Wind power uses the natural wind resource across the UK to turn turbine blades, generating low‑carbon electricity that can power businesses and reduce reliance on fossil fuels.
- Modern small wind turbines can convert around 30–45% of the wind’s energy into electricity, with typical UK systems ranging from around 1 kW to 15 kW and producing 1,700–36,000 kWh a year, depending on wind speeds.
- Smaller turbines (around 2,000 kWh per year) can cost roughly £2,000–£6,000, while larger small‑scale units can exceed £20,000–£70,000, so payback depends heavily on site conditions, electricity prices and export income.
- Wind energy works best for rural, exposed or coastal business sites with clear, consistent winds and enough land; most urban and densely built‑up locations are better suited to solar PV or green electricity tariffs.
- UK businesses interested in wind should start with a professional wind resource and planning assessment, compare costs against solar and other options, and explore support like Smart Export Guarantee payments for exported power.
What is wind energy?
Wind energy is generated by the power of the wind turning turbines set up for electricity generation.
To dive deeper into the physics of it, wind power is a type of energy caused by the sun's uneven heating of the atmosphere, the differences in Earth's surface and its rotation. This combination leads to the generation of wind, which powers the turbines to make electricity.
Wind energy is one of the oldest energy sources used by humans and, today, is one of the most established and efficient renewable energy sources that we can use.
In the UK, onshore and offshore wind together now provide a significant share of our electricity mix and are central to government plans to deliver cheaper, cleaner power in the 2030s.
How does wind energy work?
Wind power works by using wind turbines that are fitted with large blades that rotate. When there is sufficient wind to turn the blades, kinetic energy is produced and converted into electrical energy.
Typically, a generator is used during the process to convert the mechanical power from the turbine into electricity, which then powers homes and businesses across the UK.
The amount of electricity a turbine produces depends on the wind speed, air density, rotor size and turbine efficiency, which is why detailed site assessments are so important for business projects.
What is a wind turbine?
A renewable wind turbine is the modern equivalent of a windmill, with the first of its kind being created in 1887, by Professor James Blyth, a Scottish engineer. Unlike early windmills, the turbines we know today use generators and other components to convert energy from the spinning blades into a flow of electricity.
There are usually three main parts of a wind turbine that work together to create electricity:
- The rotor — Composed of three blades, its function is to capture the force of the wind and convert it into mechanical rotational energy.
- The multiplier — Connected to the engine, it aims to increase the rotational speed of the blades in order to generate more electricity.
- The generator — This part of the turbine is responsible for converting the mechanical energy of rotating blades into electrical energy.
Commercial turbines also include a nacelle (the streamlined housing or enclosure for machinery), tower, yaw system, control systems and, where needed, transformers and switchgear to connect safely to the local network or your site’s own electrical system.
What are the different types of wind energy?
Both onshore and offshore wind energy harness the power of the air to generate electricity, but their location and some of their technical aspects differ slightly.
Onshore wind energy
Located mostly on land in areas like plains, hilltops, and coastlines, onshore wind turbines are typically easier and more cost-effective to install than offshore turbines.
Their towers generally range between 50 to 100 meters, and being land-based offers quicker construction due to simpler logistics and more mature technology. But this doesn’t mean they don’t present some challenges. Land-use conflicts with industries such as agriculture or housing, threats to bird and bat populations, and sometimes resistance from local communities over noise and aesthetics can all cause conflicts.
Wind consistency on land doesn’t always match that of offshore locations because of built-up areas and calmer winds than at sea, so they don’t generate the same amount.
Offshore wind energy
Positioned at sea or on large lakes, offshore wind turbines are engineered to withstand conditions at sea like saltwater corrosion, gale-force winds, and tidal waves. The turbines often stand taller than 150 meters, allowing them to capture more energy.
Offshore wind offers more consistent wind generation with robust conditions and fewer concerns over its visual impact and loud noise.
But, it doesn’t come without some challenges, like higher installation and maintenance costs, potential environmental impacts on marine ecosystems, and technical issues related to operations and power transmission to the shore — it’s not as easy to go out and fix a turbine at sea!
For smaller UK businesses, the more relevant option is usually a small onshore turbine installed on their own land rather than investing directly in larger onshore or offshore wind farms.
How much do small business wind turbines cost?
The cost of a small wind turbine for a UK business depends on size, mounting type and site conditions, but recent guides suggest:
- Very small roof‑mounted systems around 1 kW can cost from roughly £1,500 and might produce around 1,700 to 1,800 kWh a year in a good windy site.
- Freestanding pole‑mounted systems around 1.5 to 2.5 kW can cost in the region of £7,000 to £12,500 and might generate 2,600 to 4,400 kWh a year.
- Larger small‑scale turbines of around 5 to 15 kW can cost around £23,500 at the lower price range, rising to more than £70,000. These might produce 8,900 to 36,000 kWh a year, depending on local wind speeds.
These figures don’t usually include all grid connection, planning and ongoing maintenance costs, so payback will always depend on your site, your current kWh price and how much of the electricity you can use on‑site versus exporting back to the grid.
What are the advantages of wind energy?
Despite the drawbacks, wind energy offers many advantages, contributing to its growing popularity as a renewable energy source.
- Environmental benefits — Wind power is a clean and renewable energy source that produces no air pollutants or greenhouse gas emissions during operation. It significantly reduces our carbon footprint and helps combat climate change by reducing the need for fossil fuels like coal, oil, and natural gas, which release harmful pollutants when burned.
- Energy independence — Wind energy reduces dependence on finite and imported fossil fuels, enhancing energy security and reducing vulnerability to geopolitical tensions and price fluctuations associated with oil and gas markets. This helps countries achieve greater energy independence and stability.
- Cost savings — Once a wind turbine is installed, the ongoing operational costs are relatively low, mainly involving maintenance and occasional repairs. While the initial investment and installation costs can be high, better technology and increased use have led to a drop in the cost of wind energy over the past few years, making it more competitive with traditional fossil fuels.
- Long-term investment — Wind energy projects typically have long lifespans, ranging from 20 to 30 years or more. This provides a stable and predictable source of electricity production over the long term, contributing to energy security and stability in the energy market.
- Community engagement — Wind energy projects often involve local communities through various stages, including planning, development, and operation. This encourages positive relationships between project developers and communities, bringing them together and leading to extra support for renewable energy initiatives. Wind farms also provide job opportunities for local communities and lease payments to landowners.
For businesses that can host turbines, benefits include lower daytime electricity bills, potential Smart Export Guarantee income for surplus power and the ability to showcase visible, on‑site renewables to customers and investors.
What are the disadvantages of wind energy?
While wind energy has many benefits, it also comes with disadvantages that need to be considered when evaluating its feasibility.
- High initial costs — Installing wind turbines and associated infrastructure can involve high upfront capital costs. While the cost of wind energy has decreased over the years, the initial investment can still be a barrier, especially for smaller-scale businesses or regions with limited financial resources. Smaller turbines generating around 2,000 kWh per year can cost between £2,000 and £6,000, while installing a larger unit can see prices upwards of £20,000. Larger models do generate more power - around 9,000 kWh per year, which is the equivalent of powering a factory for a year.
- Location dependency — Wind energy generation is highly dependent on the weather and works best on days with high wind speeds. Not all areas of the country have suitable wind resources for efficient and cost-effective energy production — they won’t work for businesses in city centres, for example. This means wind power isn’t a renewable option for those types of businesses.
- Maintenance and repairs — Wind turbines are complex systems and require regular maintenance and occasional repairs to ensure they’re performing at their very best. Maintenance tasks often involve working at heights, which can be challenging for workers and costly for businesses.
- Noise and visual impact — Wind turbines can generate noise, especially near residential areas. While technology is improving to produce units with lower noise, there are still concerns about the potential impact on human health and quality of life. Some people find wind turbines in landscapes to be an eyesore and intrusive.
- Grid integration — The nature of wind energy production poses challenges for grid integration. Sudden changes in wind speed can lead to fluctuations in electricity output, putting pressure on the grid system. The more small turbines integrated into the grid, the more management and coordination are needed, with other energy sources, in order to maintain a stable and reliable grid.
Planning permission can also be a major hurdle for onshore wind in parts of the UK, especially near homes or in sensitive landscapes, so early engagement with your local authority is essential.
What is a wind farm?
Wind farms are a group of wind turbines placed in a specific area to harness the wind's kinetic energy.
Essentially, wind farms are designed to generate electricity on a larger scale than individual wind turbines.
They’ll also be located in the windiest places possible to maximise the energy they can create. That’s why we tend to see them on offshore farms at sea or in fields in rural areas where tall buildings and other obstacles won’t interrupt their airflow.
Most UK SMEs will not develop their own wind farm, but they can still benefit indirectly by choosing tariffs from suppliers that buy power from UK onshore and offshore wind projects.
How strong does the wind need to be for a wind turbine to work?
Wind turbines will generally operate between 7 mph and 56 mph, with their maximum output reached at around 27 mph.
A typical turbine requires wind speeds of about 10 mph to start generating power. In practice, many small business sites in built‑up areas do not achieve the consistent 5 to 6 m/s wind speeds at hub height needed for a strong business case. This is why expert resource assessment is so important.
How efficient is wind power?
A wind turbine's efficiency can vary based on a range of factors such as its design, location and the average wind speed in that area.
Essentially, modern wind turbines can achieve conversion efficiencies of around 30-45%, increasing to around 50% during peak wind times. This is considered good - if a wind turbine were to work at 100% efficiency, the wind would completely drop after going through the blades!
For business planning, it’s more helpful to focus on expected kWh per year at your site rather than just the efficiency percentage, as this determines your potential bill savings and payback period.
Find your next renewable energy option with Bionic
Wind power can be a great investment for businesses searching for greener options. While the initial upfront price can be costly, you’ll be able to reap the benefits after the payback period.
If you need more help understanding business energy, head over to our energy guide pages for more information. Or, get in touch today with the Bionic team to compare your business energy needs, including electricity and gas.
FAQs on wind power and turbines for UK businesses
Here’s an at-a-glance guide to some of the most frequently asked questions about wind power and turbines for UK businesses:
Is wind energy a good option for small businesses in the UK?
Wind energy can be a good option for UK small businesses with enough open, windy land, but most urban SMEs will find solar PV or green tariffs more practical.
How much does a small wind turbine cost for a UK business?
A small UK wind turbine can cost from around £1,500 for a 1 kW roof‑mounted system to £20,000–£70,000 or more for larger 5–15 kW freestanding units.
How many kWh can a small business wind turbine generate in the UK?
Depending on size and wind speeds, small business turbines can generate anything from about 1,700–2,600 kWh a year for 1–1.5 kW systems up to around 36,000 kWh for 15 kW models.
What type of UK business site is best for wind energy?
Wind energy works best for rural, coastal or exposed UK sites with minimal nearby buildings, such as farms, industrial estates and logistics hubs with plenty of land.
Do UK businesses need planning permission to install a wind turbine?
In most cases, UK businesses will need planning permission and sometimes extra environmental or noise assessments before installing a commercial wind turbine.
Can UK businesses get paid for the excess wind power they generate?
Yes, if your wind system is correctly installed and metered, you may be able to earn money for surplus electricity through Smart Export Guarantee tariffs from participating UK suppliers.
Is wind energy cheaper than grid electricity for UK businesses in 2026?
Where wind conditions are strong, on‑site wind can undercut grid electricity over the system life, but for many UK businesses, other options now offer a faster and more predictable payback.
