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Residential Photovoltaic Profitability with Storage under the New Spanish Regulation: A Multi-Scenario Analysis

Author

Listed:
  • Bruno Domenech

    (Institute of Industrial and Control Engineering (IOC), Universitat Politècnica de Catalunya—BarcelonaTech (UPC), 08034 Barcelona, Spain)

  • Gema Calleja

    (Institute of Industrial and Control Engineering (IOC), Universitat Politècnica de Catalunya—BarcelonaTech (UPC), 08034 Barcelona, Spain)

  • Jordi Olivella

    (Institute of Industrial and Control Engineering (IOC), Universitat Politècnica de Catalunya—BarcelonaTech (UPC), 08034 Barcelona, Spain)

Abstract

In recent years, solar price drops and regulations have helped residential users to invest in grid-connected photovoltaic (PV) facilities. In Spain, a novel law promotes self-consumption by discounting electricity fed into the grid from the utility bill. However, the performance of PV-based facilities depends on diverse factors. The contribution of this paper is to evaluate the techno-economic performance of such installations for different considerations linked to the Spanish law. A simulation model is used to examine different representative cities, load profiles and alternative objectives: maximising profitability and self-sufficiency. For profit maximisation, results show that load profile variations entail PV size changes up to 5 kWp for the same location, together with huge economic and self-sufficiency differences. In contrast, the solar radiation and compensation rate have a more limited influence. For self-sufficiency maximisation, the economic performance drops close to EUR 0, as benefits are used to double the PV size, buy batteries and reach close to 70% self-sufficiency. Finally, a sensitivity analysis shows a limited impact of the utility tariff and the technology cost on the PV size, but a relevant influence on the benefits. These results can help investors and families to quantify the risks and benefits of domestic self-consumption facilities.

Suggested Citation

  • Bruno Domenech & Gema Calleja & Jordi Olivella, 2021. "Residential Photovoltaic Profitability with Storage under the New Spanish Regulation: A Multi-Scenario Analysis," Energies, MDPI, vol. 14(7), pages 1-17, April.
  • Handle: RePEc:gam:jeners:v:14:y:2021:i:7:p:1987-:d:529646
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    References listed on IDEAS

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    2. Codina, Eloi & Domenech, Bruno & Juanpera, Marc & Palomo-Avellaneda, Leopold & Pastor, Rafael, 2023. "Is switching to solar energy a feasible investment? A techno-economic analysis of domestic consumers in Spain," Energy Policy, Elsevier, vol. 183(C).
    3. Sebastian Pater, 2023. "Increasing Energy Self-Consumption in Residential Photovoltaic Systems with Heat Pumps in Poland," Energies, MDPI, vol. 16(10), pages 1-14, May.
    4. 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).

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