IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v17y2024i15p3618-d1441251.html
   My bibliography  Save this article

Profitability Analysis of a Prosumer Photovoltaic Installation in Light of Changing Electricity Billing Regulations in Poland

Author

Listed:
  • Krystian Janusz Cieślak

    (Department of Renewable Energy Engineering, Faculty of Environmental Engineering, Lublin University of Technology, Nadbystrzycka 40B, 20-618 Lublin, Poland)

Abstract

The evolving legislation regarding electricity billing for both consumers and prosumers, coupled with the growing interest in photovoltaic installations with energy storage, provided the motivation to examine the operational and financial viability of a prosumer photovoltaic installation located in Poland. Two options were considered: a standard photovoltaic system without energy storage and an installation with batteries. Furthermore, four scenarios were analyzed, each reflecting a different way of accounting for the electricity bought and sold by the prosumer. Another scenario is that energy prices are influenced by a high share of renewable sources. As the changes to the billing scheme are a recent development, there is no relevant analysis currently available. In order to ensure the reliability of the analysis, PVsyst 7.4 software was employed to establish the main performance and financial parameters for the selected PV systems. Analysis showed that using an energy storage system will increase the energy self-consumption from 28.6% to 60.4%, which in some cases would have a great influence on profitability of the investment. In the worst scenario, the payback period is too long (13.7 years). But in the most favorable scenario, with additional financing, it drops to 3.9 years.

Suggested Citation

  • Krystian Janusz Cieślak, 2024. "Profitability Analysis of a Prosumer Photovoltaic Installation in Light of Changing Electricity Billing Regulations in Poland," Energies, MDPI, vol. 17(15), pages 1-16, July.
  • Handle: RePEc:gam:jeners:v:17:y:2024:i:15:p:3618-:d:1441251
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/17/15/3618/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1996-1073/17/15/3618/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bertsch, Valentin & Geldermann, Jutta & Lühn, Tobias, 2017. "What drives the profitability of household PV investments, self-consumption and self-sufficiency?," Applied Energy, Elsevier, vol. 204(C), pages 1-15.
    2. Luthander, Rasmus & Widén, Joakim & Nilsson, Daniel & Palm, Jenny, 2015. "Photovoltaic self-consumption in buildings: A review," Applied Energy, Elsevier, vol. 142(C), pages 80-94.
    3. Paweł Pijarski & Piotr Kacejko, 2023. "Elimination of Line Overloads in a Power System Saturated with Renewable Energy Sources," Energies, MDPI, vol. 16(9), pages 1-19, April.
    4. Chen, Qi & Kuang, Zhonghong & Liu, Xiaohua & Zhang, Tao, 2024. "Application-oriented assessment of grid-connected PV-battery system with deep reinforcement learning in buildings considering electricity price dynamics," Applied Energy, Elsevier, vol. 364(C).
    5. Dong, Changgui & Zhou, Runmin & Li, Jiaying, 2021. "Rushing for subsidies: The impact of feed-in tariffs on solar photovoltaic capacity development in China," Applied Energy, Elsevier, vol. 281(C).
    6. Brown, Patrick R. & Williams, Travis & Brown, Maxwell L. & Murphy, Caitlin, 2024. "System-cost-minimizing deployment of PV-wind hybrids in low-carbon U.S. power systems," Applied Energy, Elsevier, vol. 365(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Angenendt, Georg & Zurmühlen, Sebastian & Axelsen, Hendrik & Sauer, Dirk Uwe, 2018. "Comparison of different operation strategies for PV battery home storage systems including forecast-based operation strategies," Applied Energy, Elsevier, vol. 229(C), pages 884-899.
    2. Fachrizal, Reza & Shepero, Mahmoud & Åberg, Magnus & Munkhammar, Joakim, 2022. "Optimal PV-EV sizing at solar powered workplace charging stations with smart charging schemes considering self-consumption and self-sufficiency balance," Applied Energy, Elsevier, vol. 307(C).
    3. Oscar Villegas Mier & Anna Dittmann & Wiebke Herzberg & Holger Ruf & Elke Lorenz & Michael Schmidt & Rainer Gasper, 2023. "Predictive Control of a Real Residential Heating System with Short-Term Solar Power Forecast," Energies, MDPI, vol. 16(19), pages 1-19, October.
    4. Luthander, Rasmus & Nilsson, Annica M. & Widén, Joakim & Åberg, Magnus, 2019. "Graphical analysis of photovoltaic generation and load matching in buildings: A novel way of studying self-consumption and self-sufficiency," Applied Energy, Elsevier, vol. 250(C), pages 748-759.
    5. Paul Neetzow & Roman Mendelevitch & Sauleh Siddiqui, 2018. "Modeling Coordination between Renewables and Grid: Policies to Mitigate Distribution Grid Constraints Using Residential PV-Battery Systems," Discussion Papers of DIW Berlin 1766, DIW Berlin, German Institute for Economic Research.
    6. Vladimir Z. Gjorgievski & Nikolas G. Chatzigeorgiou & Venizelos Venizelou & Georgios C. Christoforidis & George E. Georghiou & Grigoris K. Papagiannis, 2020. "Evaluation of Load Matching Indicators in Residential PV Systems-the Case of Cyprus," Energies, MDPI, vol. 13(8), pages 1-18, April.
    7. Schopfer, S. & Tiefenbeck, V. & Staake, T., 2018. "Economic assessment of photovoltaic battery systems based on household load profiles," Applied Energy, Elsevier, vol. 223(C), pages 229-248.
    8. Gallego-Castillo, Cristobal & Heleno, Miguel & Victoria, Marta, 2021. "Self-consumption for energy communities in Spain: A regional analysis under the new legal framework," Energy Policy, Elsevier, vol. 150(C).
    9. Ramos-Teodoro, Jerónimo & Rodríguez, Francisco & Berenguel, Manuel & Torres, José Luis, 2018. "Heterogeneous resource management in energy hubs with self-consumption: Contributions and application example," Applied Energy, Elsevier, vol. 229(C), pages 537-550.
    10. Claudia Gunther & Wolf-Peter Schill & Alexander Zerrahn, 2019. "Prosumage of solar electricity: tariff design, capacity investments, and power system effects," Papers 1907.09855, arXiv.org.
    11. Günther, Claudia & Schill, Wolf-Peter & Zerrahn, Alexander, 2021. "Prosumage of solar electricity: Tariff design, capacity investments, and power sector effects," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 152.
    12. Neetzow, Paul & Mendelevitch, Roman & Siddiqui, Sauleh, 2019. "Modeling coordination between renewables and grid: Policies to mitigate distribution grid constraints using residential PV-battery systems," Energy Policy, Elsevier, vol. 132(C), pages 1017-1033.
    13. Roberts, Mike B. & Bruce, Anna & MacGill, Iain, 2019. "Impact of shared battery energy storage systems on photovoltaic self-consumption and electricity bills in apartment buildings," Applied Energy, Elsevier, vol. 245(C), pages 78-95.
    14. 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.
    15. Zhang, Yijie & Ma, Tao & Yang, Hongxing, 2022. "Grid-connected photovoltaic battery systems: A comprehensive review and perspectives," Applied Energy, Elsevier, vol. 328(C).
    16. Aniello, Gianmarco & Shamon, Hawal & Kuckshinrichs, Wilhelm, 2021. "Micro-economic assessment of residential PV and battery systems: The underrated role of financial and fiscal aspects," Applied Energy, Elsevier, vol. 281(C).
    17. Han, Xuejiao & Garrison, Jared & Hug, Gabriela, 2022. "Techno-economic analysis of PV-battery systems in Switzerland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    18. Barbour, Edward & González, Marta C., 2018. "Projecting battery adoption in the prosumer era," Applied Energy, Elsevier, vol. 215(C), pages 356-370.
    19. Liu, Xuezhi & Yan, Zheng & Wu, Jianzhong, 2019. "Optimal coordinated operation of a multi-energy community considering interactions between energy storage and conversion devices," Applied Energy, Elsevier, vol. 248(C), pages 256-273.
    20. O'Shaughnessy, Eric & Cutler, Dylan & Ardani, Kristen & Margolis, Robert, 2018. "Solar plus: A review of the end-user economics of solar PV integration with storage and load control in residential buildings," Applied Energy, Elsevier, vol. 228(C), pages 2165-2175.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:17:y:2024:i:15:p:3618-:d:1441251. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.