Panel or check? Assessing the benefits of integrating households in energy poverty into energy communities

Abstract

This research raises the possibility for households in energy poverty to participate in shared photovoltaic systems in renewable energy communities (REC) to reduce their energy costs, with investment costs covered by public institutions. It begins by evaluating the current solution for vulnerable households, which relies on public subsidies to lower energy costs without addressing root causes or improving environmental impacts. The study compares traditional subsidies with REC participation for vulnerable households. By simulating a REC composed of such households, the results indicate that REC participation is more cost-effective for public institutions than energy subsidies. At the economically optimal size of 31 kWp, the cost of subsidies decreases by 58,000 €, a 50% reduction, with household savings increasing by 6%. At 58 kWp, the need for additional support checks is eliminated, increasing household savings by 65% but with a lower NPV of 22,500 €. The largest viable system, 75 kWp, increases average household savings by 82%. This approach also leads to a net reduction in GHG emissions, engaging previously excluded households in the energy transition.