Energy securityIs It Worth Investing in Solar PV with Batteries at Home?
Solar energy is a clean, renewable source of electricity that could potentially play a significant part in fulfilling the world’s energy requirements, but there are still some challenges to fully capitalizing on this potential. Researchers looked into some of the issues that hamper the uptake of solar energy and proposed different policies to encourage the use of this technology.
Installing solar panels to offset energy costs and reduce the environmental impact of their homes has been gaining popularity with homeowners in recent years. On a global scale, an increasing number of countries are similarly encouraging the installation of solar photovoltaics (PV) at residential buildings to increase the share of renewable energy in their energy mix and enhance energy security. Despite the promising advantages this mode of electricity generation offers there are still a number of challenges that need to be overcome.
Batteries to store excess electricity
Solar PV electricity generation peaks during the day when electricity demand is low, resulting in overproduction – especially on weekdays when people are usually not at home. Currently, this excess electricity supply is typically exported to the central electricity grid, but ideally, homes that have solar panels should be able to store overproduction of solar electricity, for example, using batteries, and consume it in the evening when demand is high and there is no solar electricity generation. The problem is that the investment cost for batteries is currently quite high, which makes it economically unprofitable for consumers to pair their solar PV with a battery. In their new study published in the journal Applied Energy, researchers from IIASA, University College London, UK, and Aalto University, Finland, looked into this challenge and proposed different policies to encourage residential electricity consumers to pair solar PV with battery energy storage.
“We wanted to determine whether investing in residential solar PV combined with battery energy storage could be profitable under current market conditions for residential consumers and what kind of support policies can be used to enhance the profitability of stand-alone batteries or PV-battery systems. On top if this, we also wanted to compare the system (or regulatory) cost of each PV-battery policy to the benefit of that particular policy for residential consumers who invest in these technologies,” explains lead author Behnam Zakeri, a researcher with the IIASA Energy, Climate, and Environment Program.
