Photovoltaic energy systems with battery storage for residential areas: an economic analysis

The global energy market is characterized by the strong growth of photovoltaic (PV) energy. This renewable source contributes to sustainable development and is a strategic player in the electricity market. The profitability of PV systems is determined by incentive tariffs in developing markets and b...

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Bibliographic Details
Published in:Journal of cleaner production 2016-09, Vol.131, p.460-474
Main Authors: Cucchiella, Federica, D'Adamo, Idiano, Gastaldi, Massimo
Format: Article
Language:English
Subjects:
Battery storage
Economic model
Economics
Energy storage
Markets
Mathematical models
Photovoltaic cells
Photovoltaic system
Profitability
Residential
Self-consumption
Sensitivity analysis
Solar cells
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Summary:The global energy market is characterized by the strong growth of photovoltaic (PV) energy. This renewable source contributes to sustainable development and is a strategic player in the electricity market. The profitability of PV systems is determined by incentive tariffs in developing markets and by the share of self-consumption in developed markets. This paper aims to evaluate (i) the profitability of PV systems in the residential sector without subsidies and (ii) the profitability of energy storage in a mature market (Italy). In this way, it is possible to define the economic results of integrated PV-battery systems, and the indicator used is the Net Present Value. Furthermore, a sensitivity analysis is conducted on the critical variables. The mathematical model proposed in this paper defines the break-even point of the increase of self-consumption at which residential PV battery systems become economically viable in a mature market. Energy storage systems are useful only when the relationship between supply and demand permits them to induce a significant increase of energy self-consumption. •Photovoltaic system is profitable in 84% of analysed scenarios.•Integrated Photovoltaic-Battery System is profitable in 0.9% of analysed scenarios.•Break-even point of increase of self-consumption is calculated for each scenario.
ISSN:0959-6526
1879-1786
DOI:10.1016/j.jclepro.2016.04.157