Abstract: The governments worldwide have proposed various beneficial policies specifically for small wind turbine system these years. The feed-in tariff and growth of market demand encourage the small-and-medium enterprise in Taiwan to invest in the development of small wind turbine system. However, in order to take advantage of these policies and gain investment return in short time, the installation site and the efficiency of the system are the critical factors. Nowadays, most small wind turbines are not designed in an optimal and systematic approach such that neither the design efficiency of the rotor blade can be attained at low-and-rated wind speeds, nor the stable power production can be maintained at high wind speed. Therefore, the purpose of this research project is to enhance the durability and efficiency of small wind turbines by improving the performance of machinery and electrical components and adopting optimal system integration. In cooperation with local companies such as Teco, Delta, and Hi-VAWT, a kilowatt prototype will be built and tested. In general, the technology and market competence of large wind turbine is limited in Taiwan. Therefore, the national government should promote the small wind turbine manufacturers and expand another prospect green energy market.