Near-Term Economic Benefits from Grid-Connected Residential PV Systems

Authors: G. Pillai, G. Putrus, T. Georgitsioti, N. Pearsall

Elsevier Energy, April 2014

One of the main reasons attributed to the slow uptake of grid-connected residential PV (photovoltaic) systems, is the lack of information about the near-term economic benefits which are as important as long-term viability for residential customers. This paper presents a comparative assessment of the near-term economic benefits of grid-connected residential PV systems. Case studies from the UK and India are taken as examples, as they vary significantly in solar resource, customer demands, electricity prices and financial support mechanisms. A metric termed PEUC (prosumer electricity unit cost) is proposed to develop an economic evaluation methodology to assess the near-term benefits from PV systems. The results obtained showed that, under the present financial support mechanisms, domestic PV systems provide near-term economic benefits in most locations in India. For most locations in the UK, cost reduction is needed to achieve near-term financial benefits and this varies depending on the location of installation. The results presented demonstrate the importance of location specific system planning and demand-generation matching through optimal sizing of the PV system and demand side management.

Results of sensitivity analysis on capital costs for locations in the UK

Results of sensitivity analysis on capital costs for locations in the UK