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A Quantitative Assessment of the Economic Viability of Photovoltaic Battery Energy Storage Systems

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  • Aayesha S. Ahmad

    (Centre for Sensors, Instrumentation and Cyber Physical System Engineering, Indian Institute of Technology Delhi, New Delhi 110016, India)

  • Sumit K. Chattopadhyay

    (Department of Energy Science and Engineering, Indian Institute of Technology Delhi, New Delhi 110016, India)

  • B. K. Panigrahi

    (Department of Electrical Engineering, Indian Institute of Technology Delhi, New Delhi 110016, India)

Abstract

Rooftop PV-BESS installations often lose profitability despite policy support to accelerate capacity growth. This paper performs techno-economic analysis to assess the effect of heterogeneity in real-world conditions on the economic viability of residential rooftop PV-BESSs. The stochastic nature of generation and consumption is modeled as multiple deterministic scenarios that vary in the capacity rating of the PV system, climatic conditions (insolation and temperature), self-consumption ratio (SCR), generation–demand concurrence, and the presence/absence of capacity and storage subsidies. The results indicate that PV-BESSs are mostly profitable when operating at a capacity factor ≥ 18%. Furthermore, higher daytime electricity consumption enables greater savings with smaller storage capacities, thereby facilitating cost-effective installations at capacity factors ≥ 8%. However, low-yielding PV-BESSs and prosumers exhibiting low generation–demand concurrence require suitable subsidy allocations to become profitable.

Suggested Citation

  • Aayesha S. Ahmad & Sumit K. Chattopadhyay & B. K. Panigrahi, 2024. "A Quantitative Assessment of the Economic Viability of Photovoltaic Battery Energy Storage Systems," Energies, MDPI, vol. 17(24), pages 1-21, December.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:24:p:6279-:d:1542611
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    References listed on IDEAS

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