Net-Metering Compared to Battery-Based Electricity Storage in a Single-Case PV Application Study Considering the Lithuanian Context

Abstract

Further increases in the number of photovoltaic installations in industry and residential buildings will require technologically and economically flexible energy storage solutions. Some countries utilize net-metering strategies, which use national networks as “virtual batteries.” Despite the financial attractiveness, net-metering faces many technological and economical challenges. It could also lead to the negative tendencies in prosumer behavior, such as a decrease in motivation for the self-consumption of photovoltaic (PV)-generated electricity. Batteries, which are installed on the prosumer’s premises, could be a solution in a particular case. However, the price for battery-based storage solutions is currently sufficiently unattractive for the average prosumer. This paper aimed to present a comparison of the economic and energy related aspects between net-metering and batteries for a single case study by considering the Lithuanian context. The net present value, degree of self-sufficiency, internal rate of return, payback time, and quantified reduction of carbon emission were calculated using a specially developed Prosumer solution simulation tool (Version 1.1, Delloite, Madrid, Spain) for both the PV and net-metering and PV and batteries cases. The received results highlight that the battery-based energy storage systems are currently not an attractive alternative in terms of price where net-metering is available; a rather radical decrease in the installation price for batteries is required.