Economics at your fingertips  

What drives the profitability of household PV investments, self-consumption and self-sufficiency?

Valentin Bertsch, Jutta Geldermann and Tobias Lühn

Applied Energy, 2017, vol. 204, issue C, 15 pages

Abstract: Many countries introduced subsidy schemes that were successful in incentivising investments into residential solar PV. The resulting growth of the global PV market was accompanied by cost reductions for PV systems, reductions of PV subsidies and, often, increasing electricity retail prices. Along with decreasing costs for battery storages, these developments made self-consumption and self-sufficiency continuously more attractive. However, the profitability of PV-storage systems depends on many factors, including technological, political and geographical aspects. We present a simulation model to identify the most profitable sizes of PV and storage systems from a household perspective and explore what drives the profitability of self-consumption and self-sufficiency. We compare and contrast Germany and Ireland to account for regulatory and geographical differences. Our results show that PV-storage systems are generally profitable in Germany and that, after minor technology cost reductions, this result holds even in the absence of subsidies. In Ireland, such systems are not yet profitable but this may change soon with expected technology costs reductions. The share of electricity demand that will be required from the grid may be reduced to 25–35%. Implications for the electricity retail business and policy makers are discussed including distributional concerns and system efficiency considerations.

Keywords: Solar PV; Self-consumption; Self-sufficiency; Battery storage (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (45) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
Working Paper: What drives the profitability of household PV investments, self-consumption and self-sufficiency? (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.elsevier. ... 405891/bibliographic

DOI: 10.1016/j.apenergy.2017.06.055

Access Statistics for this article

Applied Energy is currently edited by J. Yan

More articles in Applied Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2021-09-13
Handle: RePEc:eee:appene:v:204:y:2017:i:c:p:1-15