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The practicality of distributed PV-battery systems to reduce household grid reliance

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  • Hanser, Philip
  • Lueken, Roger
  • Gorman, Will
  • Mashal, James

Abstract

The advent of low-cost solar photovoltaics (PV) and battery electricity storage has the potential to bring about fundamental shifts in the structure of the power sector in the United States. We analyze how PV-battery systems of various sizes could reduce the dependence of residential customers on the central grid and their impact on CO2 emissions. We further analyze how the costs of such systems change as customers attempt to decrease their dependence on the grid, considering the installed cost of PV-battery systems and the cost of electricity under a net-energy metered rate structure. We analyze these relationships for residential customers in five locations across the U.S. We find that fully disconnecting from the grid with a PV-battery system is impractical for most residential customers without also having dispatchable backup generation. Finally, we estimate how the economics of behind-the-meter PV-battery systems may change if the costs of PV systems continue to fall.

Suggested Citation

  • Hanser, Philip & Lueken, Roger & Gorman, Will & Mashal, James, 2017. "The practicality of distributed PV-battery systems to reduce household grid reliance," Utilities Policy, Elsevier, vol. 46(C), pages 22-32.
    • Handle: RePEc:eee:juipol:v:46:y:2017:i:c:p:22-32
    DOI: 10.1016/j.jup.2017.03.004
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    References listed on IDEAS

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    1. Yamashiro, Ririka & Mori, Akihisa, 2023. "Combined third-party ownership and aggregation business model for the adoption of rooftop solar PV–battery systems: Implications from the case of Miyakojima Island, Japan," Energy Policy, Elsevier, vol. 173(C).
    2. Peffley, Trevor B. & Pearce, Joshua M., 2020. "The potential for grid defection of small and medium sized enterprises using solar photovoltaic, battery and generator hybrid systems," Renewable Energy, Elsevier, vol. 148(C), pages 193-204.
    3. Prata, Ricardo & Carvalho, Pedro M.S., 2018. "Self-supply and regulated tariffs: Dynamic equilibria between photovoltaic market evolution and rate structures to ensure network sustainability," Utilities Policy, Elsevier, vol. 50(C), pages 111-123.
    4. Joanna Aleksiejuk-Gawron & Saulė Milčiuvienė & Julija Kiršienė & Enrique Doheijo & Diego Garzon & Rolandas Urbonas & Darius Milčius, 2020. "Net-Metering Compared to Battery-Based Electricity Storage in a Single-Case PV Application Study Considering the Lithuanian Context," Energies, MDPI, vol. 13(9), pages 1-17, May.
    5. Gorman, Will & Barbose, Galen & Pablo Carvallo, Juan & Baik, Sunhee & Miller, Chandler & White, Philip & Praprost, Marlena, 2023. "County-level assessment of behind-the-meter solar and storage to mitigate long duration power interruptions for residential customers," Applied Energy, Elsevier, vol. 342(C).
    6. 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.
    7. Diego Fernando Quintero Pulido & Gerwin Hoogsteen & Marnix V. Ten Kortenaar & Johann L. Hurink & Robert E. Hebner & Gerard J. M. Smit, 2018. "Characterization of Storage Sizing for an Off-Grid House in the US and the Netherlands," Energies, MDPI, vol. 11(2), pages 1-13, January.
    8. Ziyu Wang & Guangya Yang, 2019. "Static Operational Impacts of Residential Solar PV Plants on the Medium Voltage Distribution Grids—A Case Study Based on the Danish Island Bornholm," Energies, MDPI, vol. 12(8), pages 1-16, April.
    9. 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.
    10. Mazzeo, Domenico, 2019. "Nocturnal electric vehicle charging interacting with a residential photovoltaic-battery system: a 3E (energy, economic and environmental) analysis," Energy, Elsevier, vol. 168(C), pages 310-331.
    11. Adewole, Ayooluwa & Shipworth, Michelle & Lemaire, Xavier & Sanderson, Danielle, 2023. "Peer-to-Peer energy trading, independence aspirations and financial benefits among Nigerian households," Energy Policy, Elsevier, vol. 174(C).
    12. Gorman, Will & Jarvis, Stephen & Callaway, Duncan, 2020. "Should I Stay Or Should I Go? The importance of electricity rate design for household defection from the power grid," Applied Energy, Elsevier, vol. 262(C).
    13. Marczinkowski, Hannah Mareike & Østergaard, Poul Alberg, 2018. "Residential versus communal combination of photovoltaic and battery in smart energy systems," Energy, Elsevier, vol. 152(C), pages 466-475.

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