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

Damian Shaw-Williams, Connie Susilawati and Geoffrey Walker
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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

Energies, 2018, vol. 11, issue 4, 1-25

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.

Keywords: photovoltaics; battery storage; economic assessment; distribution networks; distributed generation; renewable energy (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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