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Near-term economic benefits from grid-connected residential PV (photovoltaic) systems

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  • Pillai, Gobind G.
  • Putrus, Ghanim A.
  • Georgitsioti, Tatiani
  • Pearsall, Nicola M.

Abstract

One of the main reasons attributed to the slow uptake of grid-connected residential PV (photovoltaic) systems, is the lack of information about the near-term economic benefits which are as important as long-term viability for residential customers. This paper presents a comparative assessment of the near-term economic benefits of grid-connected residential PV systems. Case studies from the UK and India are taken as examples, as they vary significantly in solar resource, customer demands, electricity prices and financial support mechanisms. A metric termed PEUC (prosumer electricity unit cost) is proposed to develop an economic evaluation methodology to assess the near-term benefits from PV systems. The results obtained showed that, under the present financial support mechanisms, domestic PV systems provide near-term economic benefits in most locations in India. For most locations in the UK, cost reduction is needed to achieve near-term financial benefits and this varies depending on the location of installation. The results presented demonstrate the importance of location specific system planning and demand-generation matching through optimal sizing of the PV system and demand side management.

Suggested Citation

  • Pillai, Gobind G. & Putrus, Ghanim A. & Georgitsioti, Tatiani & Pearsall, Nicola M., 2014. "Near-term economic benefits from grid-connected residential PV (photovoltaic) systems," Energy, Elsevier, vol. 68(C), pages 832-843.
    • Handle: RePEc:eee:energy:v:68:y:2014:i:c:p:832-843
    DOI: 10.1016/j.energy.2014.02.085
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