Localized generation is defined as a small-scale power generation system and in this paper power generation using small wind turbines, is discussed as one such possibility. Since both rated power and wind turbine hub height affect characteristics of wind energy conversion system (WECS), this paper has developed a method that consumers can use to decide on the best choice, taking into account their electricity needs and the geographical conditions of the region. The factors that affect the WECS can be divided into two categories, family load demand and geographical conditions of the wind turbine setup point. Since cost per unit (CPU) of the power generated by WECS is important for the consumers, in this paper mathematical relations between the CPU and rotor diameter and wind turbine hub height, which are respectively derived from the above factors, are estimated. In order to analyze the effect of each option and also increase estimation validity, wind turbines with different rated power and hub height are considered for four locations with different geographical conditions. These locations are selected from amongst locations with the greatest potential for generating wind energy, in areas characterized by cold and hot weather conditions. The study finds that the costper kilowatt of electricity falls between Rials 900 and 1300 which is comparable to electricity prices after removal of fuel subsidies. The cost however is not low enough to encourage the private sector to invest in it. For that to happen the State has to provide financial incentives.