Technical and economic analyses of PV battery systems considering two different tariff policies

Abstract

Installing batteries in solar photovoltaic (PV) houses is becoming commonplace and different tariff policies give residents more options to lower their energy bills. This paper develops two rule-based control strategies to operate solar PV battery systems under fixed flat or time-of-use tariff policies, aiming to increase PV self-consumption and self-sufficiency. The battery modelling considers the charging and discharging efficiencies and the battery energy efficiency. The payback period for solar PV battery systems under the two tariff policies is also analysed considering various economic factors such as the capital cost of solar PV systems, the capital and maintenance costs of the batteries, the annual discount rate and the increases or decreases in the retail prices of grid electricity and the feed-in tariff. The analyses are conducted using actual PV energy and smart meter data from a real case study house in Geelong, Australia. Results indicate that when battery capacity is increased, PV self-consumption and self-sufficiency grow under both tariff policies, but this trend is limited by constrained PV generation due to seasonal conditions. Additionally, increasing solar PV system size for fixed battery capacity increases PV self-sufficiency, but decreases PV self-consumption. Results of economic analysis demonstrate that the payback period for a standalone solar PV system increases as its capacity grows. Moreover, the payback period for PV batteries can be slightly shorter or even longer than using solar PV systems alone under both tariff policies, which is economically unattractive. Considering the benefits that batteries can bring to residents and electricity networks, local governments need to be more proactive in providing financial subsidies for residents to install batteries.