Risk Adjusted Optimal Energy Asset Allocation In Residential Community with Rooftop Solar PV

With the current target on installed renewable power generation capacity in India, we see increased use of distributed renewable energy sources by residential communities. In this paper, optimal solar-battery energy portfolios for residential prosumers are found using Markowitz efficient Frontier and Sharpe Ratio considering energy returns per unit risk. Prior to building the energy portfolio, optimal sizing and design of Rooftop Solar PV are done using PV Syst 7.0 considering P
nominal
Ratio, Performance Ratio, design loss factors and shading effect. Also, financial analysis for installing rooftop PV is performed considering Feed-in tariff (FiT), Capex, Opex, Payback period, Levelised cost of energy (LCOE) and Net Present Values. Based on the load profile, installed capacity, and risk-return behavior of each prosumer, we suggest the best portfolio for balanced yearly utilization of solar and battery.