Economic Viability of Residential PV Systems with Battery Energy Storage Under Different Incentive Schemes

The high penetration of distributed renewable energy sources (DRESs), and especially photovoltaics (PVs), in LV distribution grids questions their safe and reliable operation. In this context, battery energy storage (BES) systems can be an effective solution to reduce the intermittency of electricity generated by DRESs and to enhance the resilience of power systems. However, it is unclear how different incentive schemes and regulatory frameworks affect the BES profitability for prosumers, compared with no incentives at all. In this paper, a techno-economic model is developed to investigate the economic viability of BES for residential PVs, operated under different incentive schemes. The input parameters of the model include typical load and generation profiles, electricity prices as well as typical PV and BES costs. Using these data, an optimization procedure based on an exhaustive search is performed and the optimal size of the integrated PV-BES system is derived.