Assessment of economic benefits of battery energy storage application for the PV‐equipped households in Finland

Abstract

Significant growth in residential solar photovoltaic (PV) installations and the ongoing decline in battery costs have increased interest in household solar battery energy storage projects in Finland in recent years. Among various potential applications, considerable attention is drawn to the use of the battery energy storage system (BESS) for the purpose of the households’ self‐consumption enhancement. This study presents the results of a techno‐economic study of the LiFePO 4 ‐based battery storage added to residential roof‐top PV installations in Finland to maximise self‐utilisation of on‐site solar energy generation. Using a comprehensive DC model of BESS, the battery charge and discharge levels under the typical household load and PV production conditions are simulated. The estimates of the average retail electricity prices are used to assess the value that the customer‐sited solar battery storage can provide to the household end‐users in Finland. The economic attractiveness of the battery storage projects is evaluated considering the present and forecasted BESS costs and the electricity tariff levels in Finland and the conditions for profitable operation of the solar energy storage systems are determined.