“…For example, Fu et al (2018b) present PV+battery costs based on a constant DC capacity rating (e.g., PV panels or array size; Figure 3), which means both the costs and values will differ between the independent and hybrid systems considered. However, their findings are often used to support statements about the cost savings associated with hybridization more generally (Hledik et al 2019;Gramlich, Goggin, and Burwen 2019), which cannot be decoupled from corresponding changes in value (Gorman et al 2020;DiOrio, Denholm, and Hobbs 2020;Schleifer et al 2021). Determining the cost-optimal design of a PV+battery system further requires considering these configuration-dependent costs on a life-cycle basis, which accounts for equipment replacement costs that depend on how the plant will be operated; technology costs as a function of time; the probability of component failures over time (NREL et al 2018); and policy drivers.…”