Behind-the-meter residential photovoltaic plus battery systems – An insight to business models under net-metering

Abstract

This paper contributes with an analysis of the development of photovoltaic plus battery systems under net-metering using elements of business models, from the perspective of value proposition and value capture features. The Brazilian regulatory framework for distributed generation is taken as example. Five photovoltaic plus battery schemes are envisaged and value creation is analyzed regarding two aspects: batteries can improve photovoltaic generation and load mismatch and batteries can cooperate with the distribution system. Policy implications and barriers to the implementation of these schemes are indicated. A techno-economic feasibility analysis for residential prosumers is conducted to gain insight about the viability gap in three realistic scenarios. Behind-the-meter photovoltaic plus battery systems for arbitrage under Time-of-use energy tariffs and a scenario that includes the sale of stored energy to the grid are analyzed in relation to an only-photovoltaic system scenario. Three cities with different photovoltaic generation potential, tariffs and human development index provide good diversity for the comparisons. We find that in favorable locations in terms of high TOU tariffs and good solar radiation, Behind-the-meter photovoltaic plus battery systems could be spontaneously adopted if stacking revenues are allowed, but a case-by-case study is necessary. Moreover, in other cases net present value and payback signal economic viability, then, when specific technical conditions indicate the use of batteries integrated with photovoltaic systems to mitigate negative local effects of photovoltaic generation, in many regions of the country they are viable.