Impact of electric battery degradation on cost- and energy-saving characteristics of a residential photovoltaic system

Abstract In Japan, a feed-in tariff scheme has been implemented to promote the use of photovoltaic power generators in combination with electric batteries. Although many researchers have assessed the operation of grid-connected photovoltaic systems with electric batteries, little attention has been paid to the impact of the electric batteries’ degradation characteristics. This paper evaluates the operation of a grid-connected photovoltaic/electric-battery system in a house in terms of cost savings and energy savings. We constructed a long-term operational optimization model considering the degradation characteristics of the electric battery. This model contains two objective functions: energy savings and operating costs. We create a scenario of power rates and photovoltaic/battery system configurations. To reveal the optimal operational strategy for the photovoltaic/battery system, the multi-objective optimization problem was solved. As a result, Pareto-optimal solutions were obtained, and trade-off relationships between cost and energy savings are presented. In this study, the utilization of a grid-connected photovoltaic system with an electric battery was expected to be most effective in energy-saving priority operation.