Techno-economic analysis of a PV-battery system for a commercial building under different utility rate structures

Anupam Raj, T Agami Reddy

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

The synergy between solar photovoltaic (PV) systems and behind-the-meter battery storage to reduce utility costs in buildings has drawn increasing attention. This paper presents results of a case study involving an economic analysis of batterysupported PV systems for an existing two-story commercial building in Albuquerque, New Mexico under different utility rate tariffs. The building, with 17,430 ft2 conditioned area, has been modeled in a detailed building energy simulation program, and hourly building electricity demand data and electricity demand generated using Typical Meteorological Year 2 (TMY2) weather file. The effect of strategies leading to demand leveling and demand limiting have also been discussed. Parametric analysis using System Advisor Model (SAM) software has been performed to determine the optimal sizing of the PV and battery systems for the given electric demand profiles under the assumed utility rate tariffs which will result in largest net present value (NPV). The results have been found to be highly sensitive to the costs of the PV systems and battery packs. Under the assumed realistic circumstances, we find that the inclusion of a battery pack in either a new or existing PV system does not improve the NPV even when the cost of battery storage is reduced from its current $250/kWh down to an unrealistic $50/kWh.

Original languageEnglish (US)
Title of host publicationFuels, Combustion, and Material Handling; Combustion Turbines Combined Cycles; Boilers and Heat Recovery Steam Generators; Virtual Plant and Cyber-Physical Systems; Plant Development and Construction; Renewable Energy Systems
PublisherAmerican Society of Mechanical Engineers (ASME)
Volume1
ISBN (Electronic)9780791851395
DOIs
StatePublished - Jan 1 2018
EventASME 2018 Power Conference, POWER 2018, collocated with the ASME 2018 12th International Conference on Energy Sustainability and the ASME 2018 Nuclear Forum - Lake Buena Vista, United States
Duration: Jun 24 2018Jun 28 2018

Other

OtherASME 2018 Power Conference, POWER 2018, collocated with the ASME 2018 12th International Conference on Energy Sustainability and the ASME 2018 Nuclear Forum
CountryUnited States
CityLake Buena Vista
Period6/24/186/28/18

Fingerprint

Economic analysis
Electricity
Costs

ASJC Scopus subject areas

  • Mechanical Engineering
  • Energy Engineering and Power Technology

Cite this

Raj, A., & Reddy, T. A. (2018). Techno-economic analysis of a PV-battery system for a commercial building under different utility rate structures. In Fuels, Combustion, and Material Handling; Combustion Turbines Combined Cycles; Boilers and Heat Recovery Steam Generators; Virtual Plant and Cyber-Physical Systems; Plant Development and Construction; Renewable Energy Systems (Vol. 1). American Society of Mechanical Engineers (ASME). https://doi.org/10.1115/POWER2018-7291

Techno-economic analysis of a PV-battery system for a commercial building under different utility rate structures. / Raj, Anupam; Reddy, T Agami.

Fuels, Combustion, and Material Handling; Combustion Turbines Combined Cycles; Boilers and Heat Recovery Steam Generators; Virtual Plant and Cyber-Physical Systems; Plant Development and Construction; Renewable Energy Systems. Vol. 1 American Society of Mechanical Engineers (ASME), 2018.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Raj, A & Reddy, TA 2018, Techno-economic analysis of a PV-battery system for a commercial building under different utility rate structures. in Fuels, Combustion, and Material Handling; Combustion Turbines Combined Cycles; Boilers and Heat Recovery Steam Generators; Virtual Plant and Cyber-Physical Systems; Plant Development and Construction; Renewable Energy Systems. vol. 1, American Society of Mechanical Engineers (ASME), ASME 2018 Power Conference, POWER 2018, collocated with the ASME 2018 12th International Conference on Energy Sustainability and the ASME 2018 Nuclear Forum, Lake Buena Vista, United States, 6/24/18. https://doi.org/10.1115/POWER2018-7291
Raj A, Reddy TA. Techno-economic analysis of a PV-battery system for a commercial building under different utility rate structures. In Fuels, Combustion, and Material Handling; Combustion Turbines Combined Cycles; Boilers and Heat Recovery Steam Generators; Virtual Plant and Cyber-Physical Systems; Plant Development and Construction; Renewable Energy Systems. Vol. 1. American Society of Mechanical Engineers (ASME). 2018 https://doi.org/10.1115/POWER2018-7291
Raj, Anupam ; Reddy, T Agami. / Techno-economic analysis of a PV-battery system for a commercial building under different utility rate structures. Fuels, Combustion, and Material Handling; Combustion Turbines Combined Cycles; Boilers and Heat Recovery Steam Generators; Virtual Plant and Cyber-Physical Systems; Plant Development and Construction; Renewable Energy Systems. Vol. 1 American Society of Mechanical Engineers (ASME), 2018.
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