IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v183y2016icp1075-1085.html
   My bibliography  Save this article

The economic viability of a feed-in tariff scheme that solely rewards self-consumption to promote the use of integrated photovoltaic battery systems

Author

Listed:
  • Brusco, Giovanni
  • Burgio, Alessandro
  • Menniti, Daniele
  • Pinnarelli, Anna
  • Sorrentino, Nicola

Abstract

With reference to an integrated photovoltaic battery (PV-BES) system for grid-connected end users, a feed-in tariff scheme is discussed in this article. This scheme solely rewards self-consumption. Zero is the generation price paid for the generated renewable energy, and zero is the export price paid for the renewable energy delivered to the grid. This feed-in tariff scheme, referred to as S-FIT, also excludes the net-metering service and the possibility that the grid recharges or discharges the batteries.

Suggested Citation

  • Brusco, Giovanni & Burgio, Alessandro & Menniti, Daniele & Pinnarelli, Anna & Sorrentino, Nicola, 2016. "The economic viability of a feed-in tariff scheme that solely rewards self-consumption to promote the use of integrated photovoltaic battery systems," Applied Energy, Elsevier, vol. 183(C), pages 1075-1085.
  • Handle: RePEc:eee:appene:v:183:y:2016:i:c:p:1075-1085
    DOI: 10.1016/j.apenergy.2016.09.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030626191631306X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.apenergy.2016.09.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ritzenhofen, Ingmar & Spinler, Stefan, 2016. "Optimal design of feed-in-tariffs to stimulate renewable energy investments under regulatory uncertainty — A real options analysis," Energy Economics, Elsevier, vol. 53(C), pages 76-89.
    2. Ratnam, Elizabeth L. & Weller, Steven R. & Kellett, Christopher M., 2015. "An optimization-based approach to scheduling residential battery storage with solar PV: Assessing customer benefit," Renewable Energy, Elsevier, vol. 75(C), pages 123-134.
    3. Krajacic, Goran & Duic, Neven & Tsikalakis, Antonis & Zoulias, Manos & Caralis, George & Panteri, Eirini & Carvalho, Maria da Graça, 2011. "Feed-in tariffs for promotion of energy storage technologies," Energy Policy, Elsevier, vol. 39(3), pages 1410-1425, March.
    4. Couture, Toby & Gagnon, Yves, 2010. "An analysis of feed-in tariff remuneration models: Implications for renewable energy investment," Energy Policy, Elsevier, vol. 38(2), pages 955-965, February.
    5. Merei, Ghada & Moshövel, Janina & Magnor, Dirk & Sauer, Dirk Uwe, 2016. "Optimization of self-consumption and techno-economic analysis of PV-battery systems in commercial applications," Applied Energy, Elsevier, vol. 168(C), pages 171-178.
    6. Hoppmann, Joern & Volland, Jonas & Schmidt, Tobias S. & Hoffmann, Volker H., 2014. "The economic viability of battery storage for residential solar photovoltaic systems – A review and a simulation model," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 1101-1118.
    7. Sun, Peng & Nie, Pu-yan, 2015. "A comparative study of feed-in tariff and renewable portfolio standard policy in renewable energy industry," Renewable Energy, Elsevier, vol. 74(C), pages 255-262.
    8. Mulder, Grietus & Six, Daan & Claessens, Bert & Broes, Thijs & Omar, Noshin & Mierlo, Joeri Van, 2013. "The dimensioning of PV-battery systems depending on the incentive and selling price conditions," Applied Energy, Elsevier, vol. 111(C), pages 1126-1135.
    9. McKenna, Eoghan & McManus, Marcelle & Cooper, Sam & Thomson, Murray, 2013. "Economic and environmental impact of lead-acid batteries in grid-connected domestic PV systems," Applied Energy, Elsevier, vol. 104(C), pages 239-249.
    10. Linssen, Jochen & Stenzel, Peter & Fleer, Johannes, 2017. "Techno-economic analysis of photovoltaic battery systems and the influence of different consumer load profiles," Applied Energy, Elsevier, vol. 185(P2), pages 2019-2025.
    11. Santos, João M. & Moura, Pedro S. & Almeida, Aníbal T. de, 2014. "Technical and economic impact of residential electricity storage at local and grid level for Portugal," Applied Energy, Elsevier, vol. 128(C), pages 254-264.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nojavan, Sayyad & Zare, Kazem & Mohammadi-Ivatloo, Behnam, 2017. "Optimal stochastic energy management of retailer based on selling price determination under smart grid environment in the presence of demand response program," Applied Energy, Elsevier, vol. 187(C), pages 449-464.
    2. Federica Cucchiella & Idiano D’Adamo & Massimo Gastaldi, 2017. "The Economic Feasibility of Residential Energy Storage Combined with PV Panels: The Role of Subsidies in Italy," Energies, MDPI, vol. 10(9), pages 1-18, September.
    3. von Appen, J. & Braun, M., 2018. "Interdependencies between self-sufficiency preferences, techno-economic drivers for investment decisions and grid integration of residential PV storage systems," Applied Energy, Elsevier, vol. 229(C), pages 1140-1151.
    4. Krisha Maharjan & Jian Zhang & Heejin Cho & Yang Chen, 2023. "Distributed Energy Systems: Multi-Objective Design Optimization Based on Life Cycle Environmental and Economic Impacts," Energies, MDPI, vol. 16(21), pages 1-21, October.
    5. Zhang, Yijie & Ma, Tao & Yang, Hongxing, 2022. "Grid-connected photovoltaic battery systems: A comprehensive review and perspectives," Applied Energy, Elsevier, vol. 328(C).
    6. Alnaser, Sahban W. & Althaher, Sereen Z. & Long, Chao & Zhou, Yue & Wu, Jianzhong & Hamdan, Reem, 2021. "Transition towards solar Photovoltaic Self-Consumption policies with Batteries: From the perspective of distribution networks," Applied Energy, Elsevier, vol. 304(C).
    7. Hoz, Jordi de la & Martín, Helena & Montalà, Montserrat & Matas, José & Guzman, Ramon, 2018. "Assessing the 2014 retroactive regulatory framework applied to the concentrating solar power systems in Spain," Applied Energy, Elsevier, vol. 212(C), pages 1377-1399.
    8. Hua, Weiqi & Jiang, Jing & Sun, Hongjian & Teng, Fei & Strbac, Goran, 2022. "Consumer-centric decarbonization framework using Stackelberg game and Blockchain," Applied Energy, Elsevier, vol. 309(C).
    9. Rômulo de Oliveira Azevêdo & Paulo Rotela Junior & Luiz Célio Souza Rocha & Gianfranco Chicco & Giancarlo Aquila & Rogério Santana Peruchi, 2020. "Identification and Analysis of Impact Factors on the Economic Feasibility of Photovoltaic Energy Investments," Sustainability, MDPI, vol. 12(17), pages 1-40, September.
    10. von Appen, J. & Braun, M., 2018. "Strategic decision making of distribution network operators and investors in residential photovoltaic battery storage systems," Applied Energy, Elsevier, vol. 230(C), pages 540-550.
    11. Yamamoto, Yoshihiro, 2021. "A bidirectional payment system for mitigating the supply–demand imbalance among prosumers based on the core of coalitional game theory under the enhanced use of renewable energy," Energy Economics, Elsevier, vol. 96(C).
    12. Rafael G. Nagel & Vitor Fernão Pires & Jony L. Silveira & Armando Cordeiro & Daniel Foito, 2023. "Financial Analysis of Household Photovoltaic Self-Consumption in the Context of the Vehicle-to-Home ( V2H ) in Portugal," Energies, MDPI, vol. 16(3), pages 1-21, January.
    13. Tomar, Vivek & Tiwari, G.N., 2017. "Techno-economic evaluation of grid connected PV system for households with feed in tariff and time of day tariff regulation in New Delhi – A sustainable approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 822-835.
    14. Sani Hassan, Abubakar & Cipcigan, Liana & Jenkins, Nick, 2017. "Optimal battery storage operation for PV systems with tariff incentives," Applied Energy, Elsevier, vol. 203(C), pages 422-441.
    15. Federica Cucchiella & Idiano D’Adamo & Massimo Gastaldi & Vincenzo Stornelli, 2018. "Solar Photovoltaic Panels Combined with Energy Storage in a Residential Building: An Economic Analysis," Sustainability, MDPI, vol. 10(9), pages 1-29, August.
    16. Zhang, Jian & Cho, Heejin & Luck, Rogelio & Mago, Pedro J., 2018. "Integrated photovoltaic and battery energy storage (PV-BES) systems: An analysis of existing financial incentive policies in the US," Applied Energy, Elsevier, vol. 212(C), pages 895-908.
    17. Rezaeimozafar, Mostafa & Monaghan, Rory F.D. & Barrett, Enda & Duffy, Maeve, 2022. "A review of behind-the-meter energy storage systems in smart grids," Renewable and Sustainable Energy Reviews, Elsevier, vol. 164(C).
    18. Petrollese, Mario & Cau, Giorgio & Cocco, Daniele, 2018. "Use of weather forecast for increasing the self-consumption rate of home solar systems: An Italian case study," Applied Energy, Elsevier, vol. 212(C), pages 746-758.
    19. Alessandro Burgio & Daniele Menniti & Nicola Sorrentino & Anna Pinnarelli & Zbigniew Leonowicz, 2020. "Influence and Impact of Data Averaging and Temporal Resolution on the Assessment of Energetic, Economic and Technical Issues of Hybrid Photovoltaic-Battery Systems," Energies, MDPI, vol. 13(2), pages 1-26, January.
    20. Zakeri, Behnam & Cross, Samuel & Dodds, Paul.E. & Gissey, Giorgio Castagneto, 2021. "Policy options for enhancing economic profitability of residential solar photovoltaic with battery energy storage," Applied Energy, Elsevier, vol. 290(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jessica Thomsen & Christoph Weber, "undated". "How the design of retail prices, network charges, and levies affects profitability and operation of small-scale PV-Battery Storage Systems," EWL Working Papers 1903, University of Duisburg-Essen, Chair for Management Science and Energy Economics.
    2. von Appen, J. & Braun, M., 2018. "Interdependencies between self-sufficiency preferences, techno-economic drivers for investment decisions and grid integration of residential PV storage systems," Applied Energy, Elsevier, vol. 229(C), pages 1140-1151.
    3. von Appen, J. & Braun, M., 2018. "Strategic decision making of distribution network operators and investors in residential photovoltaic battery storage systems," Applied Energy, Elsevier, vol. 230(C), pages 540-550.
    4. Schopfer, S. & Tiefenbeck, V. & Staake, T., 2018. "Economic assessment of photovoltaic battery systems based on household load profiles," Applied Energy, Elsevier, vol. 223(C), pages 229-248.
    5. Carlos J. Sarasa-Maestro & Rodolfo Dufo-López & José L. Bernal-Agustín, 2016. "Analysis of Photovoltaic Self-Consumption Systems," Energies, MDPI, vol. 9(9), pages 1-18, August.
    6. Azuatalam, Donald & Paridari, Kaveh & Ma, Yiju & Förstl, Markus & Chapman, Archie C. & Verbič, Gregor, 2019. "Energy management of small-scale PV-battery systems: A systematic review considering practical implementation, computational requirements, quality of input data and battery degradation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 555-570.
    7. Tervo, Eric & Agbim, Kenechi & DeAngelis, Freddy & Hernandez, Jeffrey & Kim, Hye Kyung & Odukomaiya, Adewale, 2018. "An economic analysis of residential photovoltaic systems with lithium ion battery storage in the United States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 1057-1066.
    8. Grimm, Veronika & Grübel, Julia & Rückel, Bastian & Sölch, Christian & Zöttl, Gregor, 2020. "Storage investment and network expansion in distribution networks: The impact of regulatory frameworks," Applied Energy, Elsevier, vol. 262(C).
    9. Vakilifard, Negar & A. Bahri, Parisa & Anda, Martin & Ho, Goen, 2018. "A two-level decision making approach for optimal integrated urban water and energy management," Energy, Elsevier, vol. 155(C), pages 408-425.
    10. Parra, David & Patel, Martin K., 2016. "Effect of tariffs on the performance and economic benefits of PV-coupled battery systems," Applied Energy, Elsevier, vol. 164(C), pages 175-187.
    11. Yu, Chin-Hsien & Wu, Xiuqin & Lee, Wen-Chieh & Zhao, Jinsong, 2021. "Resource misallocation in the Chinese wind power industry: The role of feed-in tariff policy," Energy Economics, Elsevier, vol. 98(C).
    12. Dufo-López, Rodolfo, 2015. "Optimisation of size and control of grid-connected storage under real time electricity pricing conditions," Applied Energy, Elsevier, vol. 140(C), pages 395-408.
    13. Bertsch, Valentin & Geldermann, Jutta & Lühn, Tobias, 2017. "What drives the profitability of household PV investments, self-consumption and self-sufficiency?," Applied Energy, Elsevier, vol. 204(C), pages 1-15.
    14. Lahnaoui, Amin & Stenzel, Peter & Linssen, Jochen, 2018. "Techno-economic analysis of photovoltaic battery system configuration and location☆," Applied Energy, Elsevier, vol. 227(C), pages 497-505.
    15. Petrollese, Mario & Cau, Giorgio & Cocco, Daniele, 2018. "Use of weather forecast for increasing the self-consumption rate of home solar systems: An Italian case study," Applied Energy, Elsevier, vol. 212(C), pages 746-758.
    16. Graditi, G. & Ippolito, M.G. & Telaretti, E. & Zizzo, G., 2016. "Technical and economical assessment of distributed electrochemical storages for load shifting applications: An Italian case study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 515-523.
    17. Parra, David & Swierczynski, Maciej & Stroe, Daniel I. & Norman, Stuart.A. & Abdon, Andreas & Worlitschek, Jörg & O’Doherty, Travis & Rodrigues, Lucelia & Gillott, Mark & Zhang, Xiaojin & Bauer, Chris, 2017. "An interdisciplinary review of energy storage for communities: Challenges and perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 730-749.
    18. Bai, Bo & Xiong, Siqin & Song, Bo & Xiaoming, Ma, 2019. "Economic analysis of distributed solar photovoltaics with reused electric vehicle batteries as energy storage systems in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 109(C), pages 213-229.
    19. Han, Xuejiao & Garrison, Jared & Hug, Gabriela, 2022. "Techno-economic analysis of PV-battery systems in Switzerland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    20. Linssen, Jochen & Stenzel, Peter & Fleer, Johannes, 2017. "Techno-economic analysis of photovoltaic battery systems and the influence of different consumer load profiles," Applied Energy, Elsevier, vol. 185(P2), pages 2019-2025.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:183:y:2016:i:c:p:1075-1085. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.