Economy of residential photovoltaic generation and battery energy storage in Alberta, Canada

Economic analysis of installing photovoltaic generation systems combined with battery energy storage in residential homes in Alberta was performed by comparing the net present values over the lifetime of systems with three different configurations: no photovoltaic generation and no battery energy storage, photovoltaic generation alone, and both photovoltaic generation and battery energy storage. The study was performed using real generation and load data from a photovoltaics-equipped home in Edmonton, Alberta. The addition of a battery energy storage system to the system was simulated using an optimized energy management controller. Parameter explorations were performed for combinations of equipment cost, energy prices, and energy purchase/export schemes. The results show that with the equipment and energy prices in 2017, a system with both photovoltaic generation and battery energy storage is the configuration with the highest net present value. It is closely followed by a photovoltaic only system. These systems will become even more favorable in the future, as energy prices increase and system costs decrease.