The Economic Feasibility of Residential Energy Storage Combined with PV Panels: The Role of Subsidies in Italy (original) (raw)

Solar Photovoltaic Panels Combined with Energy Storage in a Residential Building: An Economic Analysis

Sustainability

Renewable energy is a wide topic in environmental engineering and management science. Photovoltaic (PV) power has had great interest and growth in recent years. The energy produced by the PV system is intermittent and it depends on the weather conditions, presenting lower levels of production than other renewable resources (RESs). The economic feasibility of PV systems is linked typically to the share of self-consumption in a developed market and consequently, energy storage system (ESS) can be a solution to increase this share. This paper proposes an economic feasibility of residential lead-acid ESS combined with PV panels and the assumptions at which these systems become economically viable. The profitability analysis is conducted on the base of the Discounted Cash Flow (DCF) method and the index used is Net Present Value (NPV). The analysis evaluates several scenarios concerning a 3-kW plant located in a residential building in a PV developed market (Italy). It is determined by c...

Economic, Energy, and Environmental Analysis of PV with Battery Storage for Italian Households

Electronics, 2021

The use of renewable energy sources is one way to decarbonize current energy consumption. In this context, photovoltaic (PV) technology plays a direct fundamental role since it can convert sun irradiance into electricity to be used for supplying electric loads for households. Despite the huge availability of the solar resource, the intermittence of PV production may reduce its exploitation. This problem can be solved by the introduction of storage systems, such as batteries, storing electricity when PV overproduction occurs and acting as a source when PV generation is absent. Consequently, increase in self-sufficiency and self-consumption can be expected in residential end users, paving the way for more sustainable energy systems. In this paper, an economic, energy, and environmental analysis of PV systems (without and with batteries) for the household is performed for the whole of Italy, by means of a Geographical Information Systems (GIS) approach. A model to simulate energy balan...

Residential Photovoltaic Profitability with Storage under the New Spanish Regulation: A Multi-Scenario Analysis

Energies

In recent years, solar price drops and regulations have helped residential users to invest in grid-connected photovoltaic (PV) facilities. In Spain, a novel law promotes self-consumption by discounting electricity fed into the grid from the utility bill. However, the performance of PV-based facilities depends on diverse factors. The contribution of this paper is to evaluate the techno-economic performance of such installations for different considerations linked to the Spanish law. A simulation model is used to examine different representative cities, load profiles and alternative objectives: maximising profitability and self-sufficiency. For profit maximisation, results show that load profile variations entail PV size changes up to 5 kWp for the same location, together with huge economic and self-sufficiency differences. In contrast, the solar radiation and compensation rate have a more limited influence. For self-sufficiency maximisation, the economic performance drops close to EU...

Economics of Residential PV Battery Systems in the Self-Consumption Age

This paper investigates the profitability of PV battery systems that aim to reduce the electricity purchased from the grid of households. The economic feasibility is assessed based on the approach of calculating the mean electricity cost of the household equipped with a PV battery system. The study focuses on the main question: What is the break-even point of the battery system price at which residential PV battery systems become economically viable in Germany? This is analyzed by determining the limit of profitability in terms of required battery system price, which makes the investment in a PV battery system under given circumstances profitable. The impact of different economic input parameters on the required battery system price was studied for a defined reference case. The results reveal that the major factor is the interest rate, followed by the PV system price, retail electricity price and feed-in tariff. Nevertheless, several uncertainties with regard to the economic assessm...

Economic Viability of Residential PV Systems with Battery Energy Storage Under Different Incentive Schemes

2018

The high penetration of distributed renewable energy sources (DRESs), and especially photovoltaics (PVs), in LV distribution grids questions their safe and reliable operation. In this context, battery energy storage (BES) systems can be an effective solution to reduce the intermittency of electricity generated by DRESs and to enhance the resilience of power systems. However, it is unclear how different incentive schemes and regulatory frameworks affect the BES profitability for prosumers, compared with no incentives at all. In this paper, a techno-economic model is developed to investigate the economic viability of BES for residential PVs, operated under different incentive schemes. The input parameters of the model include typical load and generation profiles, electricity prices as well as typical PV and BES costs. Using these data, an optimization procedure based on an exhaustive search is performed and the optimal size of the integrated PV-BES system is derived.

Optimal Design Model for a Residential PV Storage System an Application to the Spanish Case

Sustainability

Self-consumption of photovoltaic energy is being promoted as an effective way for energy consumption in residential households. The European Directive 944/2019 promotes the use of green energy and battery energy storage systems (BESS) for self-consumption and, in Spain, the 244/2019 Royal Decree of the Spanish electrical regulatory framework allows the self-consumption of energy with a photovoltaic (PV) facility for residential use, as well as the injection of the surplus energy into the grid for which compensation will be received. At the same time, new developments in PV and BESS technologies reduce the costs of facilities, a fact that can increase the profitability of self-consumption through PV energy. This study evaluates the profitability of a household PV facility with BESS using a model based on real market prices, hourly data from user smart meters, and their own location; especially, the model gives the best configuration of PV panels power and BESS capacity. The financial...

Economic and Technical Aspects of Flexible Storage Photovoltaic Systems in Europe

Energies, 2018

Solar energy has an increasing role in the global energy mix. The need for flexible storage photovoltaic systems and energy storage in electricity networks is becoming increasingly important as more generating capacity uses solar and wind energy. This paper is a study on the economic questions related to flexible storage photovoltaic systems of household size in 2018. The aim is to clarify whether it is possible in the European Union to achieve a payback of the costs of flexible storage photovoltaic system investments for residential customers considering the technology-specific storage aspects prevalent in 2018. We studied seven different flexible storage photovoltaic investments with different battery technologies in Germany, France, Italy, and Spain because, in Europe, these countries have a prominent role with regard to the spread of photovoltaic technology. These investment alternatives are studied with the help of economic indicators for the different cases of the selected countries. At the end of our paper we come to the conclusion that an investment of a flexible storage photovoltaic (PV) system with Olivine-type-LiFePO 4 , Lithium-Ion, Vented lead-acid battery (OPzS), Sealed lead-acid battery (OPzV), and Aqueous Hybrid Ion (AHI) batteries can have a positive net present value due to the high electricity prices in Germany and in Spain. The most cost-effective technology was the Olivine-type-LiFePO 4 and the Lithium-Ion at the time of the study. We suggest the provision of governmental support and uniform European modifications to the regulatory framework, especially concerning grid fees and tariffs, which would be necessary in the beginning to help to introduce these flexible storage PV systems to the market.

Impact of Policy Incentives on the Promotion of Integrated PV and Battery Storage Systems: A Techno-economic Assessment

IET Renewable Power Generation

During the last two decades, the use of residential photovoltaic (PV) systems has been widely promoted by governments through various support mechanisms such as feed-in-tariffs, net-metering, net-billing, etc. These support schemes have developed a secure investment environment, increasing the penetration level of PVs in low-voltage distribution grids. Nonetheless, increased PV integration may introduce several technical problems regarding the secure operation of distribution grids. Battery energy storage (BES) systems can mitigate such challenges, but the high capital cost is one of the most important limiting factors towards the widespread use of these systems. In fact, the financial viability of integrated PV and BES systems under different support schemes remains an open issue. In this study, the profitability of PV and BES systems is evaluated through an advanced techno-economic model, that provides the optimal size of PV-BES system in terms of net present value, based on the electricity production and consumption profile of the installation, PV and BES systems costs, and electricity charges. The proposed model may be a useful tool for prosumers, grid operators and policymakers, to assess the impact of various incentive policy schemes and different BES operation strategies on the economic viability of PV-BES systems. Nomenclature Indices k billing period n year of analysis r pricing period t year of investment (t = 1 for an investment at the current year) ti time instant related to the BES system control Variables c t, n annual electricity cost for a net consumer supplied exclusively by the grid c SC t, n annual electricity cost for a prosumer with a PV-BES system operating under a self-consumption scheme c NeB t, n

Economic evaluation of photovoltaic and energy storage technologies for future domestic energy systems – A case study of the UK

Energy, 2020

Developments in photovoltaic (PV) technologies and mass production have resulted in continuous reduction of PV systems cost. However, concerns remain about the financial feasibility for investments in PV systems, which is facing a global shrinking of government support. This work evaluates the investment attractiveness of rooftop PV installations and the impact of energy storage systems (ESS), using the UK as a case study. The evaluation considers the location of installation, the temporal evolution of the supporting policies, local energy consumption, electricity price and cost of investment at different years. Furthermore, the use of electric vehicles (EVs) as an alternative to ESS for complementing PV systems is also investigated. Optimization techniques are employed to schedule ESS and EV energy exchange in order to maximise the investment return. The results show that the net present value of PV systems in the UK has dropped from £28,650 in 2011 to £1,200 in 2017, due to declining government support towards PV technologies. It further shows that by incorporating ESS with PV systems, the benefit in 2017 can be increased by 46%. Conversely, employing the EV as energy storage would not bring additional benefits, considering the associated battery degradation and the current battery manufacturing cost.

Environmental and economic analysis of building integrated photovoltaic systems in Italian regions

Journal of Cleaner Production, 2013

Solar energy is a form of renewable energy that can be used to combat climate change through an environmentally accepted energy supply policy with support from both private and public consumers. There are numerous factors contributing to the definition of the economic and environmental performance of solar energy investments, such as average annual irradiation, consumers' consumption, Feed in Tariff incentive system, energy portfolio, emissions produced by the photovoltaic system, rated power of the individual modules, disposable income of the investor, availability of surface for the installation of the photovoltaic panels and mission, that characterise the project (environmental maximisation, economic maximisation or self-sufficiency of the system during the first year). Given the particular geographical position of Italy, the economic profitability and environmental impact of such system were estimated, first on the provincial scale and then on the regional scale, to delineate the general characteristics that are not caused by a single scenario. The indicators used include the following: net present value (NPV), internal rate of return (IRR), discounted payback period (DP b P), discounted aggregate costbenefit ratio (BC r) and reduction of emissions of carbon dioxide (ER cd). The ultimate objective of the paper is to define the number of photovoltaic (PV) systems necessary to reach the target of renewable energy production in the above settings. A general scenario appropriate to achieve this goal, as well as implementing the total wealth generated by this framework and the reduction of CO 2 emissions resulting from the implementation of that plan, will be examined. The indicators used are total net present value per capita and reduction of carbon dioxide emissions per capita.