Case Study for Battery Bank Subsidization

The purpose of this study is to investigate how government subsidies for purchasing battery banks would affect the production of renewable energy. The Republic of Estonia, like many other countries supports investments into solar panels and the selling of renewable energy. At the same time, the cost of solar panels has been falling, and this in turn raises the question if it's reasonable to support solar panel installations? In the same time, it is extremely important that the energy supply is continuous and uniform from the grid operator's point of view. Selling electricity produced by solar panels or wind generators without an intermediate storage device is extremely chaotic and does not provide the consumer with the necessary uninterrupted energy flow. Due to the high cost of battery banks, small energy producers also find it economically difficult to install battery banks in order to ensure uninterrupted energy supply. The article focuses on finding the optimal subsidy system for support to installing a battery bank for a prosumer. The hypothesis is that an installation subsidy of 100 € per 1 kWh of energy storage capacity of a battery bank makes the investment feasible for renewable energy producers and, in this context, also increases energy security.