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...

Full description

Saved in:
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
Subjects:
Online Access:https://www.mdpi.com/1996-1073/17/24/6279
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1846104849829068800
author Aayesha S. Ahmad
Sumit K. Chattopadhyay
B. K. Panigrahi
author_facet Aayesha S. Ahmad
Sumit K. Chattopadhyay
B. K. Panigrahi
author_sort Aayesha S. Ahmad
collection DOAJ
description 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.
format Article
id doaj-art-5c887fe1f8aa4292ada40a4788d24aa6
institution Kabale University
issn 1996-1073
language English
publishDate 2024-12-01
publisher MDPI AG
record_format Article
series Energies
spelling doaj-art-5c887fe1f8aa4292ada40a4788d24aa62024-12-27T14:23:19ZengMDPI AGEnergies1996-10732024-12-011724627910.3390/en17246279A Quantitative Assessment of the Economic Viability of Photovoltaic Battery Energy Storage SystemsAayesha S. Ahmad0Sumit K. Chattopadhyay1B. K. Panigrahi2Centre for Sensors, Instrumentation and Cyber Physical System Engineering, Indian Institute of Technology Delhi, New Delhi 110016, IndiaDepartment of Energy Science and Engineering, Indian Institute of Technology Delhi, New Delhi 110016, IndiaDepartment of Electrical Engineering, Indian Institute of Technology Delhi, New Delhi 110016, IndiaRooftop 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.https://www.mdpi.com/1996-1073/17/24/6279annual yieldcapacity factorclimatic zonesDC-coupled PV-BESSgeneration–demand concurrenceglobal photovoltaic potential
spellingShingle Aayesha S. Ahmad
Sumit K. Chattopadhyay
B. K. Panigrahi
A Quantitative Assessment of the Economic Viability of Photovoltaic Battery Energy Storage Systems
Energies
annual yield
capacity factor
climatic zones
DC-coupled PV-BESS
generation–demand concurrence
global photovoltaic potential
title A Quantitative Assessment of the Economic Viability of Photovoltaic Battery Energy Storage Systems
title_full A Quantitative Assessment of the Economic Viability of Photovoltaic Battery Energy Storage Systems
title_fullStr A Quantitative Assessment of the Economic Viability of Photovoltaic Battery Energy Storage Systems
title_full_unstemmed A Quantitative Assessment of the Economic Viability of Photovoltaic Battery Energy Storage Systems
title_short A Quantitative Assessment of the Economic Viability of Photovoltaic Battery Energy Storage Systems
title_sort quantitative assessment of the economic viability of photovoltaic battery energy storage systems
topic annual yield
capacity factor
climatic zones
DC-coupled PV-BESS
generation–demand concurrence
global photovoltaic potential
url https://www.mdpi.com/1996-1073/17/24/6279
work_keys_str_mv AT aayeshasahmad aquantitativeassessmentoftheeconomicviabilityofphotovoltaicbatteryenergystoragesystems
AT sumitkchattopadhyay aquantitativeassessmentoftheeconomicviabilityofphotovoltaicbatteryenergystoragesystems
AT bkpanigrahi aquantitativeassessmentoftheeconomicviabilityofphotovoltaicbatteryenergystoragesystems
AT aayeshasahmad quantitativeassessmentoftheeconomicviabilityofphotovoltaicbatteryenergystoragesystems
AT sumitkchattopadhyay quantitativeassessmentoftheeconomicviabilityofphotovoltaicbatteryenergystoragesystems
AT bkpanigrahi quantitativeassessmentoftheeconomicviabilityofphotovoltaicbatteryenergystoragesystems