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Value of Residential Investment in Photovoltaics and Batteries in Networks: A Techno-Economic Analysis

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  • Damian Shaw-Williams

    (Science and Engineering Faculty, Queensland University of Technology, 2 George St, Brisbane City, QLD 4000, Australia)

  • Connie Susilawati

    (Science and Engineering Faculty, Queensland University of Technology, 2 George St, Brisbane City, QLD 4000, Australia)

  • Geoffrey Walker

    (Science and Engineering Faculty, Queensland University of Technology, 2 George St, Brisbane City, QLD 4000, Australia)

Abstract

Australia has one of the highest rates of residential photovoltaics penetration in the world. The willingness of households to privately invest in energy infrastructure, and the maturing of battery technology, provides significant scope for more efficient energy networks. The purpose of this paper is to evaluate the scope for promoting distributed generation and storage from within existing network spending. In this paper, a techno-economic analysis is conducted to evaluate the economic impacts on networks of private investment in energy infrastructure. A highly granular probabilistic model of households within a test area was developed and an economic evaluation of both household and network sectors performed. Results of this paper show that PV only installations carry the greatest private return and, at current battery prices, the economics of combined PV and battery systems is marginal. However, when network benefits arising from reducing residential evening peaks, improved reliability, and losses avoided are considered, this can more than compensate for private economic losses. The main conclusion of this paper is that there is significant scope for network benefits in retrofitting existing housing stock through the incentivization of a policy of a more rapid adoption of distributed generation and residential battery storage.

Suggested Citation

  • Damian Shaw-Williams & Connie Susilawati & Geoffrey Walker, 2018. "Value of Residential Investment in Photovoltaics and Batteries in Networks: A Techno-Economic Analysis," Energies, MDPI, vol. 11(4), pages 1-25, April.
    • Handle: RePEc:gam:jeners:v:11:y:2018:i:4:p:1022-:d:142728
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    3. Liu, Aaron & Miller, Wendy & Cholette, Michael E. & Ledwich, Gerard & Crompton, Glenn & Li, Yong, 2021. "A multi-dimension clustering-based method for renewable energy investment planning," Renewable Energy, Elsevier, vol. 172(C), pages 651-666.
    4. Hassan, Masood Ul & Saha, Sajeeb & Haque, Md Enamul, 2021. "PVAnalytX: A MATLAB toolkit for techno-economic analysis and performance evaluation of rooftop PV systems," Energy, Elsevier, vol. 223(C).
    5. Milad Zeraatpisheh & Reza Arababadi & Mohsen Saffari Pour, 2018. "Economic Analysis for Residential Solar PV Systems Based on Different Demand Charge Tariffs," Energies, MDPI, vol. 11(12), pages 1-19, November.
    6. Ioannis E. Kosmadakis & Costas Elmasides & Dimitrios Eleftheriou & Konstantinos P. Tsagarakis, 2019. "A Techno-Economic Analysis of a PV-Battery System in Greece," Energies, MDPI, vol. 12(7), pages 1-14, April.
    7. Shaw-Williams, Damian & Susilawati, Connie, 2020. "A techno-economic evaluation of Virtual Net Metering for the Australian community housing sector," Applied Energy, Elsevier, vol. 261(C).
    8. Shaw-Williams, Damian & Susilawati, Connie & Walker, Geoff & Varendorff, Jeremy, 2019. "Valuing the impact of residential photovoltaics and batteries on network electricity losses: An Australian case study," Utilities Policy, Elsevier, vol. 60(C), pages 1-1.
    9. Ghaeth Fandi & Ibrahim Ahmad & Famous O. Igbinovia & Zdenek Muller & Josef Tlusty & Vladimir Krepl, 2018. "Voltage Regulation and Power Loss Minimization in Radial Distribution Systems via Reactive Power Injection and Distributed Generation Unit Placement," Energies, MDPI, vol. 11(6), pages 1-17, May.
    10. Anna-Lena Lane & Magdalena Boork & Patrik Thollander, 2019. "Barriers, Driving Forces and Non-Energy Benefits for Battery Storage in Photovoltaic (PV) Systems in Modern Agriculture," Energies, MDPI, vol. 12(18), pages 1-17, September.
    11. Say, Kelvin & John, Michele & Dargaville, Roger, 2019. "Power to the people: Evolutionary market pressures from residential PV battery investments in Australia," Energy Policy, Elsevier, vol. 134(C).
    12. 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.
    13. Lai, Chun Sing & Locatelli, Giorgio & Pimm, Andrew & Tao, Yingshan & Li, Xuecong & Lai, Loi Lei, 2019. "A financial model for lithium-ion storage in a photovoltaic and biogas energy system," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    14. Ngoc Thien Le & Watit Benjapolakul, 2019. "Evaluation of Contribution of PV Array and Inverter Configurations to Rooftop PV System Energy Yield Using Machine Learning Techniques," Energies, MDPI, vol. 12(16), pages 1-13, August.
    15. Ibrahim Ahmad & Ghaeth Fandi & Zdenek Muller & Josef Tlusty, 2019. "Voltage Quality and Power Factor Improvement in Smart Grids Using Controlled DG Units," Energies, MDPI, vol. 12(18), pages 1-18, September.

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