Assessing the economic benefits of investing in residential photovoltaics with energy storage systems in a ‘greening’ economy: a case study of Norway
Assessing the economic benefits of investing in residential photovoltaics with energy storage systems in a ‘greening’ economy: a case study of Norway
This study aims to determine under what conditions it would be economically beneficial for a “typical” Norwegian household to invest in a photovoltaic (PV) system in combination with energy storage. In recent years, the Norwegian government has committed to reduce the country’s greenhouse gas (GHG) emissions by 40% against 1990 levels and has developed a strategy to comply with international emissions reduction obligations. Reducing energy consumption in the domestic sector is part of their strategy to achieve this target, with 2% of national GHG emission and 31% of national energy consumption linked to the domestic sector. This study uses data from the current building stock and climate datasets to build a dynamic model using TRNSYS. The simulated energy demands for the “typical” houses and the potential for generating electricity using PV, with and without storage, in the different locations forms the foundation of a cost-benefit analysis. Using payback period as an indicator for economic benefit, a current investment in a PV system supported by a storage solution is unlikely to be beneficial within the lifetime of the PV modules. A PV-only system on the other hand will have a payback period of 12-17 years and will be of economic benefit in all locations considered in this study. Using experiences from other countries, storage systems are likely to be more beneficial in a political-financial environment with lower Feed-in Tariffs and without the initial investment support for PV-only systems.
residential photovoltaic, energy storage, energy independance, self-consumption, norway
Aanesen, Mari
08c745e2-f455-4b23-aded-6f20b5255ea5
James, Patrick
da0be14a-aa63-46a7-8646-a37f9a02a71b
24 April 2019
Aanesen, Mari
08c745e2-f455-4b23-aded-6f20b5255ea5
James, Patrick
da0be14a-aa63-46a7-8646-a37f9a02a71b
Aanesen, Mari and James, Patrick
(2019)
Assessing the economic benefits of investing in residential photovoltaics with energy storage systems in a ‘greening’ economy: a case study of Norway.
Meliora: International Journal of Student Sustainability Research, 2 (1).
(doi:10.22493/Meliora.2.1.0015).
Abstract
This study aims to determine under what conditions it would be economically beneficial for a “typical” Norwegian household to invest in a photovoltaic (PV) system in combination with energy storage. In recent years, the Norwegian government has committed to reduce the country’s greenhouse gas (GHG) emissions by 40% against 1990 levels and has developed a strategy to comply with international emissions reduction obligations. Reducing energy consumption in the domestic sector is part of their strategy to achieve this target, with 2% of national GHG emission and 31% of national energy consumption linked to the domestic sector. This study uses data from the current building stock and climate datasets to build a dynamic model using TRNSYS. The simulated energy demands for the “typical” houses and the potential for generating electricity using PV, with and without storage, in the different locations forms the foundation of a cost-benefit analysis. Using payback period as an indicator for economic benefit, a current investment in a PV system supported by a storage solution is unlikely to be beneficial within the lifetime of the PV modules. A PV-only system on the other hand will have a payback period of 12-17 years and will be of economic benefit in all locations considered in this study. Using experiences from other countries, storage systems are likely to be more beneficial in a political-financial environment with lower Feed-in Tariffs and without the initial investment support for PV-only systems.
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Published date: 24 April 2019
Keywords:
residential photovoltaic, energy storage, energy independance, self-consumption, norway
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Local EPrints ID: 430487
URI: http://eprints.soton.ac.uk/id/eprint/430487
PURE UUID: d1bbcd7b-07ad-4507-87d8-9914cf8eb50b
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Date deposited: 02 May 2019 16:30
Last modified: 16 Mar 2024 02:45
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Author:
Mari Aanesen
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