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Consumer preferences for household-level battery energy storage

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  • Agnew, Scott
  • Dargusch, Paul

Abstract

This paper examines the role of the consumer in the emerging household-level battery market. We use stated preference data and choice modelling to measure household preferences for battery attributes and functionality. Our survey sample has been sourced from the State of Queensland, Australia, which has some of the highest per capita PV installation rates in the world and has many characteristics of an early-adopter market for battery storage. While cost will be a key determinant for mass market uptake, our study found that drivers encouraging self-sufficiency and grid independence will have a strong influence on battery system preferences. A majority of the 268 respondents to our survey would prefer to buy medium or large battery systems despite higher costs and longer payback periods. Nearly 70% of respondents hope to eventually disconnect from the existing centralized electricity supply network. Should these findings translate more broadly, and battery prices decline as forecast, changing energy market dynamics could result in a range of negative outcomes. Declining infrastructure utilization, asset impairment, rising electricity costs and negative social outcomes could eventuate as consumers attempt to reduce their reliance on existing electricity supply systems. To proactively manage these risks, our study demonstrates the clear need to better understand and address consumer motivations in the impending energy market transition.

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  • Agnew, Scott & Dargusch, Paul, 2017. "Consumer preferences for household-level battery energy storage," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 609-617.
    • Handle: RePEc:eee:rensus:v:75:y:2017:i:c:p:609-617
    DOI: 10.1016/j.rser.2016.11.030
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    References listed on IDEAS

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    Cited by:

    1. Say, Kelvin & John, Michele, 2021. "Molehills into mountains: Transitional pressures from household PV-battery adoption under flat retail and feed-in tariffs," Energy Policy, Elsevier, vol. 152(C).
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    6. Kelvin Say & Michele John, 2020. "Molehills into mountains: Transitional pressures from household PV-battery adoption under flat retail and feed-in tariffs," Papers 2012.00934, arXiv.org.
    7. Susan Isaya Sun & Andrew Frederick Crossland & Andrew John Chipperfield & Richard George Andrew Wills, 2019. "An Emissions Arbitrage Algorithm to Improve the Environmental Performance of Domestic PV-Battery Systems," Energies, MDPI, vol. 12(3), pages 1-19, February.
    8. Federica Cucchiella & Idiano D’Adamo & Massimo Gastaldi & Vincenzo Stornelli, 2018. "Solar Photovoltaic Panels Combined with Energy Storage in a Residential Building: An Economic Analysis," Sustainability, MDPI, vol. 10(9), pages 1-29, August.
    9. Ambrosio-Albala, P. & Upham, P. & Bale, C.S.E. & Taylor, P.G., 2020. "Exploring acceptance of decentralised energy storage at household and neighbourhood scales: A UK survey," Energy Policy, Elsevier, vol. 138(C).
    10. Khezri, Rahmat & Mahmoudi, Amin & Aki, Hirohisa, 2022. "Optimal planning of solar photovoltaic and battery storage systems for grid-connected residential sector: Review, challenges and new perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).
    11. Martin, Nigel & Rice, John, 2021. "Power outages, climate events and renewable energy: Reviewing energy storage policy and regulatory options for Australia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    12. Lei Zhang & Yingqi Liu & Beibei Pang & Bingxiang Sun & Ari Kokko, 2020. "Second Use Value of China’s New Energy Vehicle Battery: A View Based on Multi-Scenario Simulation," Sustainability, MDPI, vol. 12(1), pages 1-25, January.
    13. Schram, Wouter L. & Lampropoulos, Ioannis & van Sark, Wilfried G.J.H.M., 2018. "Photovoltaic systems coupled with batteries that are optimally sized for household self-consumption: Assessment of peak shaving potential," Applied Energy, Elsevier, vol. 223(C), pages 69-81.
    14. Adewole, Ayooluwa & Shipworth, Michelle & Lemaire, Xavier & Sanderson, Danielle, 2023. "Peer-to-Peer energy trading, independence aspirations and financial benefits among Nigerian households," Energy Policy, Elsevier, vol. 174(C).
    15. Priessner, Alfons & Hampl, Nina, 2020. "Can product bundling increase the joint adoption of electric vehicles, solar panels and battery storage? Explorative evidence from a choice-based conjoint study in Austria," Ecological Economics, Elsevier, vol. 167(C).
    16. Mohammad Alipour & Rodney A. Stewart & Oz Sahin, 2021. "Beyond the Diffusion of Residential Solar Photovoltaic Systems at Scale: Allegorising the Battery Energy Storage Adoption Behaviour," Energies, MDPI, vol. 14(16), pages 1-12, August.
    17. Kim, S.K. & Cho, K.H. & Kim, J.Y. & Byeon, G., 2019. "Field study on operational performance and economics of lithium-polymer and lead-acid battery systems for consumer load management," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.
    18. Esther Hoffmann & Franziska Mohaupt, 2020. "Joint Storage: A Mixed-Method Analysis of Consumer Perspectives on Community Energy Storage in Germany," Energies, MDPI, vol. 13(11), pages 1-22, June.
    19. Esplin, Ryan & Nelson, Tim, 2022. "Redirecting solar feed in tariffs to residential battery storage: Would it be worth it?," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 373-389.
    20. Best, Rohan & Li, Han & Trück, Stefan & Truong, Chi, 2021. "Actual uptake of home batteries: The key roles of capital and policy," Energy Policy, Elsevier, vol. 151(C).
    21. D'Adamo, Idiano & Gastaldi, Massimo & Morone, Piergiuseppe, 2022. "The impact of a subsidized tax deduction on residential solar photovoltaic-battery energy storage systems," Utilities Policy, Elsevier, vol. 75(C).
    22. Kalkbrenner, Bernhard J., 2019. "Residential vs. community battery storage systems – Consumer preferences in Germany," Energy Policy, Elsevier, vol. 129(C), pages 1355-1363.
    23. Moiz Masood Syed & Gregory M. Morrison & James Darbyshire, 2020. "Shared Solar and Battery Storage Configuration Effectiveness for Reducing the Grid Reliance of Apartment Complexes," Energies, MDPI, vol. 13(18), pages 1-23, September.

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