Customer economics of residential PV–battery systems in Thailand

Aksornchan Chaianong; Athikom Bangviwat; Christoph Menke; Barbara Breitschopf; Wolfgang Eichhammer

doi:10.1016/j.renene.2019.06.159

Customer economics of residential PV–battery systems in Thailand

Aksornchan Chaianong, Athikom Bangviwat^*, Christoph Menke, Barbara Breitschopf, Wolfgang Eichhammer

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

The currently high upfront costs of batteries and the low retail electricity prices of households make investments in PV–battery systems not yet economically feasible. However, the experiences/learning curves of renewable generation technologies lead to the assumption that battery prices will rapidly decline with increasing diffusion. Furthermore, projected retail electricity rates are expected to increase with rising electricity demand. This study investigates the returns to residential customers using PV–battery systems under decreasing battery prices in Thailand. The impacts of four additional parameters have been included. The analysis is based mainly on net present values (NPV) and levelized costs of electricity (LCOE). The results show that battery size and its cost, and retail rate design have significant impacts on the returns, whereas buyback incentives for excess electricity have the lowest impact. In addition, to increase the power system flexibility by using PV–battery systems, the Thai government should provide the appropriate financial support, by which the savings incurred by the grid extension investments compensate for the costs.

Original language	English
Pages (from-to)	297-308
Number of pages	12
Journal	Renewable Energy
Volume	146
DOIs	https://doi.org/10.1016/j.renene.2019.06.159
Publication status	Published - 2020
Externally published	Yes

Funding

The authors would like to express their gratitude to the Joint Graduate School of Energy and Environment, King Mongkut's University of Technology Thonburi , and the Center of Excellence on Energy Technology and Environment, PERDO, Bangkok, Thailand , as well as the Petchra Pra Jom Klao Doctoral Degree Research Scholarship from King Mongkut's University of Technology Thonburi for financial support. Aksornchan would also like to thank Ms. Verena Jülch from Energy Systems and Markets, Energy System Analysis, Fraunhofer Institute for Solar Energy Systems ISE for her valuable input and the Competence Center Energy Policy and Energy Markets (Fraunhofer Institute for Systems and Innovation Research ISI) while conducting part of this research in Karlsruhe, Germany.

Keywords

Battery
Customer economics
PV
Residential
Rooftop
Thailand

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.renene.2019.06.159

Cite this

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title = "Customer economics of residential PV–battery systems in Thailand",

abstract = "The currently high upfront costs of batteries and the low retail electricity prices of households make investments in PV–battery systems not yet economically feasible. However, the experiences/learning curves of renewable generation technologies lead to the assumption that battery prices will rapidly decline with increasing diffusion. Furthermore, projected retail electricity rates are expected to increase with rising electricity demand. This study investigates the returns to residential customers using PV–battery systems under decreasing battery prices in Thailand. The impacts of four additional parameters have been included. The analysis is based mainly on net present values (NPV) and levelized costs of electricity (LCOE). The results show that battery size and its cost, and retail rate design have significant impacts on the returns, whereas buyback incentives for excess electricity have the lowest impact. In addition, to increase the power system flexibility by using PV–battery systems, the Thai government should provide the appropriate financial support, by which the savings incurred by the grid extension investments compensate for the costs.",

keywords = "Battery, Customer economics, PV, Residential, Rooftop, Thailand",

author = "Aksornchan Chaianong and Athikom Bangviwat and Christoph Menke and Barbara Breitschopf and Wolfgang Eichhammer",

year = "2020",

doi = "10.1016/j.renene.2019.06.159",

language = "English",

volume = "146",

pages = "297--308",

journal = "Renewable Energy",

issn = "0960-1481",

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}

TY - JOUR

T1 - Customer economics of residential PV–battery systems in Thailand

AU - Chaianong, Aksornchan

AU - Bangviwat, Athikom

AU - Menke, Christoph

AU - Breitschopf, Barbara

AU - Eichhammer, Wolfgang

PY - 2020

Y1 - 2020

N2 - The currently high upfront costs of batteries and the low retail electricity prices of households make investments in PV–battery systems not yet economically feasible. However, the experiences/learning curves of renewable generation technologies lead to the assumption that battery prices will rapidly decline with increasing diffusion. Furthermore, projected retail electricity rates are expected to increase with rising electricity demand. This study investigates the returns to residential customers using PV–battery systems under decreasing battery prices in Thailand. The impacts of four additional parameters have been included. The analysis is based mainly on net present values (NPV) and levelized costs of electricity (LCOE). The results show that battery size and its cost, and retail rate design have significant impacts on the returns, whereas buyback incentives for excess electricity have the lowest impact. In addition, to increase the power system flexibility by using PV–battery systems, the Thai government should provide the appropriate financial support, by which the savings incurred by the grid extension investments compensate for the costs.

AB - The currently high upfront costs of batteries and the low retail electricity prices of households make investments in PV–battery systems not yet economically feasible. However, the experiences/learning curves of renewable generation technologies lead to the assumption that battery prices will rapidly decline with increasing diffusion. Furthermore, projected retail electricity rates are expected to increase with rising electricity demand. This study investigates the returns to residential customers using PV–battery systems under decreasing battery prices in Thailand. The impacts of four additional parameters have been included. The analysis is based mainly on net present values (NPV) and levelized costs of electricity (LCOE). The results show that battery size and its cost, and retail rate design have significant impacts on the returns, whereas buyback incentives for excess electricity have the lowest impact. In addition, to increase the power system flexibility by using PV–battery systems, the Thai government should provide the appropriate financial support, by which the savings incurred by the grid extension investments compensate for the costs.

KW - Battery

KW - Customer economics

KW - PV

KW - Residential

KW - Rooftop

KW - Thailand

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DO - 10.1016/j.renene.2019.06.159

M3 - Article

AN - SCOPUS:85068184398

SN - 0960-1481

VL - 146

SP - 297

EP - 308

JO - Renewable Energy

JF - Renewable Energy

ER -

Customer economics of residential PV–battery systems in Thailand

Abstract

Funding

Keywords

UN SDGs

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