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Profitability of Residential Battery Energy Storage Combined with Solar Photovoltaics

Author

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  • Christoph Goebel

    (Chair of Business Information Systems, Technical University of Munich, Boltzmannstr. 3, 85748 Garching, Germany)

  • Vicky Cheng

    (Munich School of Engineering, Technical University of Munich, Lichtenbergstr. 4a, 85748 Garching, Germany)

  • Hans-Arno Jacobsen

    (Chair of Business Information Systems, Technical University of Munich, Boltzmannstr. 3, 85748 Garching, Germany)

Abstract

Lithium-ion (Li-Ion) batteries are increasingly being considered as bulk energy storage in grid applications. One such application is residential energy storage combined with solar photovoltaic (PV) panels to enable higher self-consumption rates, which has become financially more attractive recently due to decreasing feed-in subsidies. Although residential energy storage solutions are commercially mature, it remains unclear which system configurations and circumstances, including aggregator-based applications such as the provision of ancillary services, lead to profitable consumer investments. Therefore, we conduct an extensive simulation study that is able to jointly capture these aspects. Our results show that, at current battery module prices, even optimal system configurations still do not lead to profitable investments into Li-Ion batteries if they are merely used as a buffer for solar energy. The first settings in which they will become profitable, as prices are further declining, will be larger households at locations with higher average levels of solar irradiance. If the batteries can be remote-controlled by an aggregator to provide overnight negative reserve, their profitability increases significantly.

Suggested Citation

  • Christoph Goebel & Vicky Cheng & Hans-Arno Jacobsen, 2017. "Profitability of Residential Battery Energy Storage Combined with Solar Photovoltaics," Energies, MDPI, vol. 10(7), pages 1-17, July.
    • Handle: RePEc:gam:jeners:v:10:y:2017:i:7:p:976-:d:104360
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    References listed on IDEAS

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    Cited by:

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    3. 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.
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    6. Holger C. Hesse & Michael Schimpe & Daniel Kucevic & Andreas Jossen, 2017. "Lithium-Ion Battery Storage for the Grid—A Review of Stationary Battery Storage System Design Tailored for Applications in Modern Power Grids," Energies, MDPI, vol. 10(12), pages 1-42, December.
    7. Reza Sabzehgar & Diba Zia Amirhosseini & Saeed D. Manshadi & Poria Fajri, 2021. "Stochastic Expansion Planning of Various Energy Storage Technologies in Active Power Distribution Networks," Sustainability, MDPI, vol. 13(10), pages 1-17, May.
    8. Tronchin, Lamberto & Manfren, Massimiliano & Nastasi, Benedetto, 2018. "Energy efficiency, demand side management and energy storage technologies – A critical analysis of possible paths of integration in the built environment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 95(C), pages 341-353.
    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. Chie Hoon Song, 2021. "Exploring and Predicting the Knowledge Development in the Field of Energy Storage: Evidence from the Emerging Startup Landscape," Energies, MDPI, vol. 14(18), pages 1-20, September.
    11. Sofiane Kichou & Nikolaos Skandalos & Petr Wolf, 2020. "Evaluation of Photovoltaic and Battery Storage Effects on the Load Matching Indicators Based on Real Monitored Data," Energies, MDPI, vol. 13(11), pages 1-20, May.
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    13. Omowunmi Mary Longe & Khmaies Ouahada, 2018. "Mitigating Household Energy Poverty through Energy Expenditure Affordability Algorithm in a Smart Grid," Energies, MDPI, vol. 11(4), pages 1-17, April.

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