Economic viability of decentralised battery storage systems for single-family buildings up to cross-building utilisation

Abstract

Due to the great cost decrease of photovoltaics as well as battery storage, especially in the segment of decentralised home storage, the number of grid-connected battery-supported photovoltaic systems being installed in recent years is steadily increasing. However, the scientific community has intensively discussed that lithium-based battery storage systems cannot yet be operated economically in most cases. This paper addresses the level to which the cost of lithium battery storage needs to decrease in order to be economically viable. For this purpose, the economic viability of battery storage systems in single-family buildings, multi-apartment buildings and across-buildings is analysed on the basis of a linear optimisation model and the method of the internal rate of return. The utilisation of the storage system is optimised for different battery and photovoltaic capacities on the basis of generation and consumption. The internal rate of return method is used to compare the savings resulting from the reduced consumption from the electricity grid with the investment costs and the operation and maintenance costs. In order to be able to estimate the influence of the most important parameters a sensitivity analysis is also carried out. The analysis concludes that, depending on the combination of capacities of photovoltaics, battery storage and in relation to the load profile, the battery storage costs would have to drop by at least 85% in order to generate a certain predefined return over a depreciation period of 25 years. Furthermore, the more different load profiles can be covered directly with photovoltaic electricity, e.g. in a multi-apartment building or across buildings, the less electricity needs to be stored and this reduces the benefit and the utilisation of the battery storage and therefore the specific investment costs must further decrease. Another conclusion that emerges from the sensitivity analysis is that the electricity price and the spread between the electricity price and the feed-in tariff have the greatest influence on the investment costs and profitability. Due to limited space for photovoltaics and simultaneously high consumption, self-consumption is already quite high with cross-building utilisation and can no longer be increased to the necessary extent by the battery storage system, which is why the investment costs must also be lower. The novelty of this paper lies in particular in the fact that it deals with the target costs of battery storage systems in various scenarios for certain rates of return. The analyses in this paper are intended to provide a deeper understanding of the framework conditions for the economic operation of a battery storage system in the aforementioned scenarios. However, this paper does not take into account alternative sources of income other than savings on grid consumption. The possibility of time-variable (grid) tariffs, for example, is also not considered in detail in this paper and should be analysed further in future work.