Techno-Economic Analysis of PV and BESS for Residential Loads

Abstract

Energy sustainability is a critical issue, particularly in residential areas where renewable energy sources, such as solar photovoltaic (PV) systems, are becoming increasingly integrated. Battery Energy Storage Systems (BESS) play a pivotal role in optimizing energy utilization, balancing supply and demand, and reducing reliance on the power grid. This research contributes to the field of sustainable energy management by providing a detailed analysis of energy flow, battery performance, and degradation in a residential PV-BESS setup, introducing a comprehensive financial analysis, including Net Present Value (NPV), Internal Rate of Return (IRR), Return on Investment (ROI), and Payback Period, to assess the feasibility of BESS deployment, highlighting the impact of current tariff regulations on the financial outcomes of residential energy storage systems, offering practical recommendations for optimizing battery usage to balance energy demand and supply while preserving battery health, and scalability tha propose a scalable model for integrating PV-BESS systems in residential areas, contributing to broader renewable energy adoption and grid stability. The findings of this research conclude that, based on the load conditions in this study, a BESS with a capacity below 500 kWh can be a viable investment option for utilities, offering both technical and economic benefits. However, when considering unmet demand, the best choice is a BESS with a capacity of 350 kWh.