Solar energy storage in German households: profitability, load changes and flexibility

Thomas Kaschub, Patrick Jochem and Wolf Fichtner

Energy Policy, 2016, vol. 98, issue C, 520-532

Abstract: The developments of battery storage technology together with photovoltaic (PV) roof-top systems might lead to far-reaching changes in the electricity demand structures and flexibility of households. The implications are supposed to affect the generation mix of utilities, distribution grid utilization, and electricity price. Using a techno-economic optimization model of a household system, we endogenously dimension PV system and stationary battery storage (SBS). The results of the reference scenario show positive net present values (NPV) for PV systems of approx. 500–1,800EUR/kWp and NPV for SBS of approx. 150–500EUR/kWh. Main influences are the demand of the households, self-consumption rates, investment costs, and electricity prices. We integrate electric vehicles (EV) with different charging strategies and find increasing NPV of the PV system and self-consumption of approx. 70%. With further declining system prices for solar energy storage and increasing electricity prices, PV systems and SBS can be profitable in Germany from 2018 on even without a guaranteed feed-in tariff or subsidies. Grid utilization substantially changes by households with EV and PV-SBS. We discuss effects of different incentives and electricity tariff options (e. g. load limits or additional demand charges). Concluding, solar energy storage systems will bring substantial changes to electricity sales.

Keywords: Demand flexibility; Optimization model; Tariff design; Electric vehicles; Controlled charging; Battery storage profitability (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (62)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:98:y:2016:i:c:p:520-532

DOI: 10.1016/j.enpol.2016.09.017

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