A Quantitative Assessment of the Economic Viability of Photovoltaic Battery Energy Storage Systems

Rooftop PV-BESS installations often lose profitability despite policy support to accelerate capacity growth. This paper performs techno-economic analysis to assess the effect of heterogeneity in real-world conditions on the economic viability of residential rooftop PV-BESSs. The stochastic nature of...

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Bibliographic Details
Main Authors: Aayesha S. Ahmad, Sumit K. Chattopadhyay, B. K. Panigrahi
Format: Article
Language:English
Published: MDPI AG 2024-12-01
Series:Energies
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Online Access:https://www.mdpi.com/1996-1073/17/24/6279
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Summary:Rooftop PV-BESS installations often lose profitability despite policy support to accelerate capacity growth. This paper performs techno-economic analysis to assess the effect of heterogeneity in real-world conditions on the economic viability of residential rooftop PV-BESSs. The stochastic nature of generation and consumption is modeled as multiple deterministic scenarios that vary in the capacity rating of the PV system, climatic conditions (insolation and temperature), self-consumption ratio (SCR), generation–demand concurrence, and the presence/absence of capacity and storage subsidies. The results indicate that PV-BESSs are mostly profitable when operating at a capacity factor ≥ 18%. Furthermore, higher daytime electricity consumption enables greater savings with smaller storage capacities, thereby facilitating cost-effective installations at capacity factors ≥ 8%. However, low-yielding PV-BESSs and prosumers exhibiting low generation–demand concurrence require suitable subsidy allocations to become profitable.
ISSN:1996-1073