TY - JOUR
T1 - Economic evaluation of photovoltaic and energy storage technologies for future domestic energy systems – A case study of the UK
AU - Wang, Yue
AU - Das, Ridoy
AU - Putrus, Ghanim
AU - Kotter, Richard
PY - 2020/7/15
Y1 - 2020/7/15
N2 - Developments in photovoltaic (PV) technologies and mass production have resulted in continuous reduction of PV systems cost. However, concerns remain about the financial feasibility for investments in PV systems, which is facing a global shrinking of government support. This work evaluates the investment attractiveness of rooftop PV installations and the impact of energy storage systems (ESS), using the UK as a case study. The evaluation considers the location of installation, the temporal evolution of the supporting policies, local energy consumption, electricity price and cost of investment at different years. Furthermore, the use of electric vehicles (EVs) as an alternative to ESS for complementing PV systems is also investigated. Optimisation techniques are employed to schedule ESS and EV energy exchange in order to maximise the investment return. The results show that the net present value of PV systems in the UK has dropped from £28,650 in 2011 to £1,200 in 2017, due to declining government support towards PV technologies. It further shows that by incorporating ESS with PV systems, the benefit in 2017 can be increased by 46%. Conversely, employing the EV as energy storage would not bring additional benefits, considering the associated battery degradation and the current battery manufacturing cost.
AB - Developments in photovoltaic (PV) technologies and mass production have resulted in continuous reduction of PV systems cost. However, concerns remain about the financial feasibility for investments in PV systems, which is facing a global shrinking of government support. This work evaluates the investment attractiveness of rooftop PV installations and the impact of energy storage systems (ESS), using the UK as a case study. The evaluation considers the location of installation, the temporal evolution of the supporting policies, local energy consumption, electricity price and cost of investment at different years. Furthermore, the use of electric vehicles (EVs) as an alternative to ESS for complementing PV systems is also investigated. Optimisation techniques are employed to schedule ESS and EV energy exchange in order to maximise the investment return. The results show that the net present value of PV systems in the UK has dropped from £28,650 in 2011 to £1,200 in 2017, due to declining government support towards PV technologies. It further shows that by incorporating ESS with PV systems, the benefit in 2017 can be increased by 46%. Conversely, employing the EV as energy storage would not bring additional benefits, considering the associated battery degradation and the current battery manufacturing cost.
KW - Electric vehicle
KW - Energy storage
KW - Feed-in tariff
KW - Net present value
KW - Non-linear optimisation
KW - PV
U2 - 10.1016/j.energy.2020.117826
DO - 10.1016/j.energy.2020.117826
M3 - Article
VL - 203
JO - Energy
JF - Energy
SN - 0360-5442
M1 - 117826
ER -
