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Integrated photovoltaic and battery energy storage (PV-BES) systems: An analysis of existing financial incentive policies in the US

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  • Zhang, Jian
  • Cho, Heejin
  • Luck, Rogelio
  • Mago, Pedro J.

Abstract

This paper presents an analysis of existing financial incentive policies in the U.S. for integrated photovoltaic and battery energy storage (PV-BES) systems. A mathematical model of PV-BES system to evaluate annual energy performance is developed in this paper. Four types of buildings (i.e., hospital, large office, large hotel, and secondary school) located in four different states, which each has their own PV and/or BES incentives, are selected and analyzed. Based on the energy performance data for each building type, the simply payback period (PBP) for the PV-BES system in different locations is calculated according to the local incentive policies. The PBP is chosen as an indicator to evaluate the effectiveness of incentive policies for different locations and building types by comparing it to the PBP for the same PV-BES systems without incentive policies. The reduction of carbon dioxide emission (CDE) due to the PV generation is also investigated since it indicates the potential to reduce the PBP for a further step when a high carbon credit is available. Furthermore, a parametric analysis is conducted to determine the sensitivity and contribution of parameters such as the capacity of the PV-BES system, the capital cost of PV module and the battery storage on the performance of the PV-BES system. Results show that for all the evaluated buildings in California and Hawaii, the existing incentive policy could reduce the PBP effectively below 10 years. However, the PBP for most of the evaluated buildings in New Jersey and New York were high even when both the PV and BES incentive policies were taken into account (approximately from 11 to 29 years).

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  • Zhang, Jian & Cho, Heejin & Luck, Rogelio & Mago, Pedro J., 2018. "Integrated photovoltaic and battery energy storage (PV-BES) systems: An analysis of existing financial incentive policies in the US," Applied Energy, Elsevier, vol. 212(C), pages 895-908.
    • Handle: RePEc:eee:appene:v:212:y:2018:i:c:p:895-908
    DOI: 10.1016/j.apenergy.2017.12.091
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    Cited by:

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    7. Wenhui Zhao & Rong Li & Shuan Zhu, 2024. "Subsidy Policies and Economic Analysis of Photovoltaic Energy Storage Integration in China," Energies, MDPI, vol. 17(10), pages 1-24, May.
    8. Koskela, Juha & Rautiainen, Antti & Järventausta, Pertti, 2019. "Using electrical energy storage in residential buildings – Sizing of battery and photovoltaic panels based on electricity cost optimization," Applied Energy, Elsevier, vol. 239(C), pages 1175-1189.
    9. Zakeri, Behnam & Gissey, Giorgio Castagneto & Dodds, Paul E. & Subkhankulova, Dina, 2021. "Centralized vs. distributed energy storage – Benefits for residential users," Energy, Elsevier, vol. 236(C).
    10. Li, Longxi & Cao, Xilin, 2022. "Comprehensive effectiveness assessment of energy storage incentive mechanisms for PV-ESS projects based on compound real options," Energy, Elsevier, vol. 239(PA).
    11. Thopil, George Alex & Sachse, Christiaan Eddie & Lalk, Jörg & Thopil, Miriam Sara, 2020. "Techno-economic performance comparison of crystalline and thin film PV panels under varying meteorological conditions: A high solar resource southern hemisphere case," Applied Energy, Elsevier, vol. 275(C).
    12. Ahsan, Syed M. & Khan, Hassan A. & Hassan, Naveed-ul & Arif, Syed M. & Lie, Tek-Tjing, 2020. "Optimized power dispatch for solar photovoltaic-storage system with multiple buildings in bilateral contracts," Applied Energy, Elsevier, vol. 273(C).
    13. Neves, Rebecca & Cho, Heejin & Zhang, Jian, 2021. "State of the nation: Customizing energy and finances for geothermal technology in the United States residential sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    14. Maria Psillaki & Nikolaos Apostolopoulos & Ilias Makris & Panagiotis Liargovas & Sotiris Apostolopoulos & Panos Dimitrakopoulos & George Sklias, 2023. "Hospitals’ Energy Efficiency in the Perspective of Saving Resources and Providing Quality Services through Technological Options: A Systematic Literature Review," Energies, MDPI, vol. 16(2), pages 1-21, January.
    15. Yang, Changhui & Fu, Yuting & He, Lijun & Jiang, Qi & Cui, Yangyu, 2024. "Real options analysis for regional investment decisions of household PV-ESS in China," Energy, Elsevier, vol. 293(C).
    16. Zhang, Tianyang & Pota, Himanshu & Chu, Chi-Cheng & Gadh, Rajit, 2018. "Real-time renewable energy incentive system for electric vehicles using prioritization and cryptocurrency," Applied Energy, Elsevier, vol. 226(C), pages 582-594.
    17. Bagheri, Mehdi & Delbari, Seyed Hamid & Pakzadmanesh, Mina & Kennedy, Christopher A., 2019. "City-integrated renewable energy design for low-carbon and climate-resilient communities," Applied Energy, Elsevier, vol. 239(C), pages 1212-1225.
    18. Zakeri, Behnam & Cross, Samuel & Dodds, Paul.E. & Gissey, Giorgio Castagneto, 2021. "Policy options for enhancing economic profitability of residential solar photovoltaic with battery energy storage," Applied Energy, Elsevier, vol. 290(C).

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