Abstract: This paper analyses the use of a battery energy storage system (BESS) in a domestic dwelling to determine whether it can provide a cost-effective investment for the homeowner.
Can storage systems reduce household energy cost?
Both systems can effectively reduce household energy cost, ranging from 22 to 30%. However, neither type of storage system was found profitable under the current system, but the payback time of CES (26 years) was found shorter than that of HES (43 years).
Are energy storage systems economically viable?
Energy storage systems (ESS) employed with domestic PV systems have been investigated in Ref. [ 12], which wasshown to be economically viable by self-consumption of the PV production and participating in the wholesale electricity market.
This work has assessed the investment attractiveness for domestic energy solutions, namely PV, energy storage and electric vehicles for different installation sizes and year of installation, as well as different geographical locations. FIT has been identified as the driving factor for return of domestic PV investment.
The PV and storage models are described in our previous study [ 30 ]. The HES is managed by an HES management (HESM) unit that can operate in three different modes, Self-Consumption Mode under flat (HES-Flat) and TOU tariffs (HES-SC), and Grid-Charging Mode (HES-GC) under TOU tariff.
Is sizing a photovoltaic system a viable investment?
Optimal sizing of PV/storage systems based on real-life data. Developments in photovoltaic (PV) technologies and mass production have resulted in continuous reduction of PV systems cost. However, concerns remain about the financial feasibility for investments in PV systems, which is facing a global shrinking of government support.
The results showed that both HES and CES can significantly improve the use of on-site generation by at least 22% compared to the baseline households without a storage system. Both systems can effectively reduce household energy cost, ranging from 22 to 30%.