Installed Cost Benchmarks and Deployment Barriers for Residential Solar Photovoltaics with Energy Storage: Q1 2016

Ardani, Kristen; O’Shaughnessy, Eric; Fu, Ran; McClurg, Chris; Huneycutt, Joshua; Margolis, Robert

doi:10.2172/1338670

Cited by 48 publications

(44 citation statements)

References 9 publications

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“…According to Ardani et al [56], estimation and comparison of the cost of energy storage for residential systems is not easy because of the diversity of storage applications. Storage costs are estimated based on the amount of energy stored (energy capacity in kWh), or based on its power rating (the rate at which it charges or discharges in kW).…”

Section: Discussionmentioning

confidence: 99%

Notes on the Economics of Residential Hybrid Energy System

et al. 2019

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Despite advances in small-scale hybrid renewable energy technologies, there are limited economic frameworks that model the different decisions made by a residential hybrid system owner. We present a comprehensive review of studies that examine the techno-economic feasibility of small-scale hybrid energy systems, and we find that the most common approach is to compare the annualized life-time costs to the expected energy output and choose the system with the lowest cost per output. While practical, this type of benefit–cost analysis misses out on other production and consumption decisions that are simultaneously made when adopting a hybrid energy system. In this paper, we propose a broader and more robust theoretical framework—based on production and utility theory—to illustrate how the production of renewable energy from multiple sources affects energy efficiency, energy services, and energy consumption choices in the residential sector. Finally, we discuss how the model can be applied to guide a hybrid-prosumer’s decision-making in the US residential sector. Examining hybrid renewable energy systems within a solid economic framework makes the study of hybrid energy more accessible to economists, facilitating interdisciplinary collaborations.

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Section: Discussionmentioning

confidence: 99%

Notes on the Economics of Residential Hybrid Energy System

et al. 2019

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“…As such, defining the cost of a hybrid system containing a battery component is not an area of consensus. The U.S. based National Renewable Energy Laboratory (NREL) in collaboration with Rocky Mountain Institute (RMI) resorted actually to comparing systems based on the total required cost only given the difficulty in arriving at a reliable metric [35].…”

Section: Review and Motivationmentioning

confidence: 99%

“…For the purposes of this paper, and keeping in mind the deviation in current LCOE assessments of systems with storage, we will resort to the net present cost (NPC) when comparing the different scenarios. Explicitly, we follow the same route that has been pursued by NREL [35]. We will not associate any cost with the actual energy generation from the solar PV panels or from the battery, and we do not associate a value to the capacity of the storage available.…”

Section: Financial Assumptionsmentioning

confidence: 99%

State-of-Charge Effects on Standalone Solar-Storage Systems in Hot Climates: A Case Study in Saudi Arabia

Elshurafa

Aldubyan

2019

Sustainability

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In this paper, we quantify the economic and environmental implications of operating a standalone photovoltaic-battery system (PVB) while varying the battery’s minimum allowable state of charge (MSOC), the load profile, and simultaneously incorporating ambient temperature effects in hot climates. To that end, Saudi Arabia has been chosen for this case study. Over a project lifetime of 25 years, we find that, contrary to the widely accepted norm of 50% being a reasonable MSOC, a lower MSOC can bestow economic benefits. For example, a MSOC of 20% results in a lower number of batteries required throughout the lifetime of the project—while still meeting demand. For a village of 1000 homes, this translates to a saving of $47 million in net present value. Further, incorporating temperature effects results in deducing more realistic costs that are 125% higher than the ideal scenario (i.e., when temperature is not modeled). This difference stems from underestimating the actual number of batteries needed throughout the project lifetime. Compared to a diesel-powered microgrid, and for a village of 1000 homes, a PVB would, on an annual basis, avoid emitting 5000 tons of carbon and avoid burning 2 million liters of diesel.

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“…This project is inspired by past studies on technology costs for solar photovoltaic (PV) and combined solar PV and storage systems. These studies have reported PV costs by component (e.g., engineering and equipment, soft costs, and modules) and projected costs during the next 5 years (Ardani et al 2017;Chung et al 2015;Fu et al 2016;Feldman et al 2015;Bolinger and Seel 2016). The added challenge of conducting a similar study on technology costs for microgrid technology is the difficulty in generalizing costs from one design and application to another.…”

Section: Microgrid Technology Costsmentioning

confidence: 99%

Phase I Microgrid Cost Study: Data Collection and Analysis of Microgrid Costs in the United States

Miner

Flores-Espino

MacAlpine³

et al. 2018

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Executive SummaryMicrogrids are gaining in popularity because of their adaptability and flexible expandability, the need for increased electricity reliability, the increased affordability of distributed energy resources (DERs) and grid intelligence devices, goals to reduce greenhouse gas emissions, and other factors. The U.S. Department of Energy commissioned the National Renewable Energy Laboratory to complete a microgrid cost study and develop a microgrid cost model. The goal is to elucidate the variables that have the highest impact on costs as well as potential areas for cost reduction. This study consists of two phases. Phase I comprises the collection and analysis of data from microgrid projects built in the United States and is the subject of this report. In Phase II, NREL will assess current barriers facing the industry and identify potential solutions with help from industry representatives.Microgrid components are classified as follows in the form used to collect cost data from industry representatives for NREL's microgrid cost database:• DERs: diesel, natural gas, combined heat and power (CHP), biofuel, solar photovoltaic (PV), wind, and fuel cell and energy storage• Microgrid controller: primary, secondary, or tertiary• Additional infrastructure: distribution system infrastructure, information technology communications upgrades, metering, etc.

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Installed Cost Benchmarks and Deployment Barriers for Residential Solar Photovoltaics with Energy Storage: Q1 2016

Cited by 48 publications

References 9 publications

Notes on the Economics of Residential Hybrid Energy System

Notes on the Economics of Residential Hybrid Energy System

State-of-Charge Effects on Standalone Solar-Storage Systems in Hot Climates: A Case Study in Saudi Arabia

Phase I Microgrid Cost Study: Data Collection and Analysis of Microgrid Costs in the United States

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