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Customer economics of residential PV–battery systems in Thailand

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  • Chaianong, Aksornchan
  • Bangviwat, Athikom
  • Menke, Christoph
  • Breitschopf, Barbara
  • Eichhammer, Wolfgang

Abstract

The currently high upfront costs of batteries and the low retail electricity prices of households make investments in PV–battery systems not yet economically feasible. However, the experiences/learning curves of renewable generation technologies lead to the assumption that battery prices will rapidly decline with increasing diffusion. Furthermore, projected retail electricity rates are expected to increase with rising electricity demand. This study investigates the returns to residential customers using PV–battery systems under decreasing battery prices in Thailand. The impacts of four additional parameters have been included. The analysis is based mainly on net present values (NPV) and levelized costs of electricity (LCOE). The results show that battery size and its cost, and retail rate design have significant impacts on the returns, whereas buyback incentives for excess electricity have the lowest impact. In addition, to increase the power system flexibility by using PV–battery systems, the Thai government should provide the appropriate financial support, by which the savings incurred by the grid extension investments compensate for the costs.

Suggested Citation

  • Chaianong, Aksornchan & Bangviwat, Athikom & Menke, Christoph & Breitschopf, Barbara & Eichhammer, Wolfgang, 2020. "Customer economics of residential PV–battery systems in Thailand," Renewable Energy, Elsevier, vol. 146(C), pages 297-308.
    • Handle: RePEc:eee:renene:v:146:y:2020:i:c:p:297-308
    DOI: 10.1016/j.renene.2019.06.159
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    Cited by:

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    2. Ma, Tao & Zhang, Yijie & Gu, Wenbo & Xiao, Gang & Yang, Hongxing & Wang, Shuxiao, 2022. "Strategy comparison and techno-economic evaluation of a grid-connected photovoltaic-battery system," Renewable Energy, Elsevier, vol. 197(C), pages 1049-1060.
    3. Methee Srikranjanapert & Siripha Junlakarn & Naebboon Hoonchareon, 2021. "How an Integration of Home Energy Management and Battery System Affects the Economic Benefits of Residential PV System Owners in Thailand," Sustainability, MDPI, vol. 13(5), pages 1-20, March.
    4. Kotowicz, Janusz & Uchman, Wojciech, 2021. "Analysis of the integrated energy system in residential scale: Photovoltaics, micro-cogeneration and electrical energy storage," Energy, Elsevier, vol. 227(C).
    5. Beuse, Martin & Dirksmeier, Mathias & Steffen, Bjarne & Schmidt, Tobias S., 2020. "Profitability of commercial and industrial photovoltaics and battery projects in South-East-Asia," Applied Energy, Elsevier, vol. 271(C).
    6. Liu, Jia & Chen, Xi & Yang, Hongxing & Li, Yutong, 2020. "Energy storage and management system design optimization for a photovoltaic integrated low-energy building," Energy, Elsevier, vol. 190(C).

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