Regional performance analysis of residential microgrids: A multi-factor assessment of cost, resilience, and environmental impact

Abstract

Microgrids offer a promising way to enhance resilience, sustainability, and decentralization in energy systems. However, their adoption is often limited by the challenge of tailoring solutions to specific locations while keeping deployment scalable and cost-effective. Designing each microgrid to suit local conditions—including local climate patterns, household energy demands, grid reliability, and utility rate structures—often necessitates custom engineering, which inflates costs and delays implementation. This study addresses this challenge by proposing a framework to identify scalable, standardized design archetypes for residential microgrids that integrate photovoltaic (PV) systems and battery energy storage systems (BESS). Through an extensive factorial analysis of 7,200 system configurations across Texas, California, and New York, we demonstrate that PV capacity is the predominant factor driving system performance, accounting for nearly all observed variations. Battery storage, while regionally dependent, exhibits its strongest influence in Texas and a comparatively weaker role in New York. Our findings reveal consistent performance inflection points, with PV capacities covering 40–50% of household consumption driving energy independence, while those exceeding 60% maximize environmental benefits through avoided emissions. Notably, these results highlight a convergence between economic and environmental goals, enabling streamlined design strategies centered on PV systems with regionally optimized battery storage. By offering standardized yet adaptable archetypes which leverage these insights, this framework simplifies microgrid design, reducing costs and complexity while preserving the flexibility needed to address local conditions.