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Economics of Grid-Tied Solar Photovoltaic Systems Coupled to Heat Pumps: The Case of Northern Climates of the U.S. and Canada

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  • Joshua M. Pearce

    (Department of Material Science & Engineering, Michigan Technological University, Houghton, MI 49931, USA
    Department of Electrical & Computer Engineering, Michigan Technological University, Houghton, MI 49931, USA
    School of Electrical Engineering, Aalto University, FI-00076 Espoo, Finland)

  • Nelson Sommerfeldt

    (Department of Material Science & Engineering, Michigan Technological University, Houghton, MI 49931, USA
    Department of Energy Technology, KTH Royal Institute of Technology, SE-100 44 Stockholm, Sweden)

Abstract

Solar photovoltaic (PV) technology is now a profitable method to decarbonize the grid, but if catastrophic climate change is to be avoided, emissions from transportation and heating must also decarbonize. One approach to renewable heating is leveraging improvements in PV with heat pumps (HPs). To determine the potential for PV+HP systems in northern areas of North America, this study performs numerical simulations and economic analysis using the same loads and climate, but with local electricity and natural gas rates for Sault Ste. Marie, in both Canada and U.S. Ground-mounted, fixed-tilt, grid-tied PV systems are sized to match 100% of electric loads considering cases both with and without air source HPs for residences with natural gas-based heating. For the first time the results show North American residents can profitably install residential PV+HP systems, earning up to 1.9% return in the U.S. and 2.7% in Canada, to provide for all of their electric and heating needs. Returns on PV-only systems are higher, up to 4.3%; however, the PV capacities are less than half. These results suggest northern homeowners have a clear and simple method to reduce their greenhouse gas emissions by making an investment that offers a higher internal rate of return than savings accounts, CDs and GICs in both countries. Residential PV and solar-powered heat pumps can be considered 25-year investments in financial security and environmental sustainability.

Suggested Citation

  • Joshua M. Pearce & Nelson Sommerfeldt, 2021. "Economics of Grid-Tied Solar Photovoltaic Systems Coupled to Heat Pumps: The Case of Northern Climates of the U.S. and Canada," Energies, MDPI, vol. 14(4), pages 1-17, February.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:4:p:834-:d:493973
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    Cited by:

    1. Sommerfeldt, Nelson & Pearce, Joshua M., 2023. "Can grid-tied solar photovoltaics lead to residential heating electrification? A techno-economic case study in the midwestern U.S," Applied Energy, Elsevier, vol. 336(C).
    2. Mariusz Niekurzak & Wojciech Lewicki & Wojciech Drożdż & Paweł Miązek, 2022. "Measures for Assessing the Effectiveness of Investments for Electricity and Heat Generation from the Hybrid Cooperation of a Photovoltaic Installation with a Heat Pump on the Example of a Household," Energies, MDPI, vol. 15(16), pages 1-20, August.
    3. Alexander V. Klokov & Alexander S. Tutunin & Elizaveta S. Sharaborova & Aleksei A. Korshunov & Egor Y. Loktionov, 2023. "Inverter Heat Pumps as a Variable Load for Off-Grid Solar-Powered Systems," Energies, MDPI, vol. 16(16), pages 1-17, August.
    4. Sadat, Seyyed Ali & Hoex, Bram & Pearce, Joshua M., 2022. "A Review of the Effects of Haze on Solar Photovoltaic Performance," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    5. Joshua M. Pearce, 2022. "Agrivoltaics in Ontario Canada: Promise and Policy," Sustainability, MDPI, vol. 14(5), pages 1-20, March.
    6. Guillermo Almonacid-Olleros & Gabino Almonacid & David Gil & Javier Medina-Quero, 2022. "Evaluation of Transfer Learning and Fine-Tuning to Nowcast Energy Generation of Photovoltaic Systems in Different Climates," Sustainability, MDPI, vol. 14(5), pages 1-15, March.
    7. Guo, Rui & Meunier, Simon & Protopapadaki, Christina & Saelens, Dirk, 2023. "A review of European low-voltage distribution networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 173(C).
    8. Uzair Jamil & Abigail Bonnington & Joshua M. Pearce, 2023. "The Agrivoltaic Potential of Canada," Sustainability, MDPI, vol. 15(4), pages 1-26, February.
    9. Joshua M. Pearce & Richard Parncutt, 2023. "Quantifying Global Greenhouse Gas Emissions in Human Deaths to Guide Energy Policy," Energies, MDPI, vol. 16(16), pages 1-20, August.
    10. Uzair Jamil & Joshua M. Pearce, 2022. "Energy Policy for Agrivoltaics in Alberta Canada," Energies, MDPI, vol. 16(1), pages 1-31, December.

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