The Economic Feasibility of Residential Energy Storage Combined with PV Panels: The Role of Subsidies in Italy

Abstract

A solar photovoltaic system produces electricity by converting energy from the sun. By the end of 2016, the global installed solar photovoltaic capacity reached 305 GW. Its growth is impressive in the last years; in fact, it was only equal to 41 GW in 2010. However, Europe has installed only 6.9 GW in 2016 (−1.7 GW in comparison to previous year) and this annual power installed is equal to 9% of global one in according to data released by Solar Power Europe. The profitability of PV systems in mature markets depends on the harmonization between demanded energy and produced one residential energy storage when combined with photovoltaic panels is able to increase the share of self-consumption. This work proposes a mathematical model, in which a Discounted Cash Flow analysis is conducted to evaluate the financial feasibility of photovoltaic-integrated lead acid battery systems in Italy. The indicator used is Net Present Value. Furthermore, a break-even point analysis, in terms of an increase of self-consumption, is conducted. The residential sector is investigated and energy storage system investment is incentivized by fiscal deduction and regional subsidies. The analysis provides several case studies, determined by combinations of the following variables: photovoltaic plant size, battery capacity, the increase of the share of self-consumption, and the useful lifetime of energy storage system. The same case studies are proposed also in four alternative scenarios, where is the modified the structure of subsidies. Results confirm that the profitability can be reached in presence of subsidies.

Wind–PV-Based Hybrid DC Microgrid (DCMG) Development: An Experimental Investigation and Comparative Economic Analysis

“…The system consists of a centralized control with various local controllers which enables the precise management of power flow attained with the use of a forecasting model to predict the power availability from renewable sources, battery backup, and supplying power to loads with efficient and economical operation. The mathematical model for coordination of photovoltaics, storage battery and load demand has been considered in another study by Cucchiella et al [35]. Discounted cash flow analysis, net present value and break-even analysis are undertaken in this study, which reveals that the proposed system would be profitable only when subsidies were provided for the purchase of various pieces of equipment.…”

Solar‐powered BDD‐electrolysis remediation of soil washing fluid spiked with diesel

“…Therefore, the use of traditional electrical energy to power the BDD‐electrolysis is a major challenge for the commercial feasibility of this technology. However, in the last decades due to availability, accessibility, and ease of use, solar photovoltaic (PV) panels are considered the most environmentally benign technology for energy production . In this context, the use of standalone/off‐grid PVs to directly power electrochemical reactors has been investigated as a more eco‐friendly technology for the remediation of contaminated wastewater.…”

“…In this context, the use of standalone/off‐grid PVs to directly power electrochemical reactors has been investigated as a more eco‐friendly technology for the remediation of contaminated wastewater. A solar panel plant consists of PV panels and batteries . Souza et al .…”

Economic Evaluation of Smart PV Inverters with a Three-Operation-Phase Watt-Var Control Scheme for Enhancing PV Penetration in Distribution Systems in Taiwan

“…To provide more information for investors and governments to make better decisions or policies for the PV industry, the economic feasibility of residential energy storage combined with PV panels in Italy [15] considering subsidies, and an economic evaluation of the hybrid enhancing scheme with DSTATCOM and active power curtailment for PV penetration in Taipower distribution systems [16] considering FITs, were presented. In this paper, a cost-benefit analysis and a sensitivity analysis considering FITs for our novel Watt-Var control scheme [14] with three operation phases to enhance PV penetration in distribution systems in Taiwan will then be presented.…”

“…The annual revenue of PV power sales, the initial capital investment cost for a PV project with or without a smart inverter, and the operating and maintenance (O&M) cost are taken into account. The paper then presents a cost-benefit analysis [18] (using indicators net present value (NPV) [15,16] and net present value (BCR) [16]) and a sensitivity analysis [16,18] for the cases with and without power factor control function. Finally, some concluding remarks are presented.…”