Volume 49

Evaluation of Cost Effectiveness of Residential PV/BESS Systems in Japan Considering Outage Mitigation and Battery Degradation Masashi Matsubara, Masahiro Mae, Ryuji Matsuhashi

Abstract

The system with solar panels and a battery (PV/BESS system) gets residential attention as a measure against natural disasters and fluctuation of electricity costs. This paper aims to evaluate Japan’s comprehensive economic profits from the PV/BESS system. This paper uses the optimization model with battery degradation and the one that keeps the state-of-charge (SoC) high. The payback period is calculated from the reduction in electricity costs. The battery’s lifespan is also calculated by the operation decided by optimization. As a result, the optimization with degradation achieves the least gap between the payback period and the battery’s lifespan. Including the effect of outage mitigation decreases the
payback period. Considering the reduction in electricity costs and outage mitigation, introducing the PV/BESS system in a household can be economically viable.

Keywords battery degradation, economic analysis, PV/BESS system, residential resilience