A Quantitative Assessment of the Economic Viability of Photovoltaic Battery Energy Storage Systems

Aayesha S. Ahmad (), Sumit K. Chattopadhyay and B. K. Panigrahi
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Aayesha S. Ahmad: Centre for Sensors, Instrumentation and Cyber Physical System Engineering, Indian Institute of Technology Delhi, New Delhi 110016, India
Sumit K. Chattopadhyay: Department of Energy Science and Engineering, Indian Institute of Technology Delhi, New Delhi 110016, India
B. K. Panigrahi: Department of Electrical Engineering, Indian Institute of Technology Delhi, New Delhi 110016, India

Energies, 2024, vol. 17, issue 24, 1-21

Abstract: Rooftop PV-BESS installations often lose profitability despite policy support to accelerate capacity growth. This paper performs techno-economic analysis to assess the effect of heterogeneity in real-world conditions on the economic viability of residential rooftop PV-BESSs. The stochastic nature of generation and consumption is modeled as multiple deterministic scenarios that vary in the capacity rating of the PV system, climatic conditions (insolation and temperature), self-consumption ratio (SCR), generation–demand concurrence, and the presence/absence of capacity and storage subsidies. The results indicate that PV-BESSs are mostly profitable when operating at a capacity factor ≥ 18%. Furthermore, higher daytime electricity consumption enables greater savings with smaller storage capacities, thereby facilitating cost-effective installations at capacity factors ≥ 8%. However, low-yielding PV-BESSs and prosumers exhibiting low generation–demand concurrence require suitable subsidy allocations to become profitable.

Keywords: annual yield; capacity factor; climatic zones; DC-coupled PV-BESS; generation–demand concurrence; global photovoltaic potential; net present value; self-consumption ratio; techno-economic analysis (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: 2024
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