Cost-Effectiveness of Li-Ion Battery Storage with a Special Focus on Photovoltaic Systems in Private Households

FCN Working Paper No. 02/2018

45 Pages Posted: 7 Mar 2019

See all articles by Silvia Vonsien

Silvia Vonsien

RWTH Aachen University

Reinhard Madlener

RWTH Aachen University

Date Written: February 1, 2018

Abstract

Using a self-developed economic model with a technical battery aging component, this paper provides a new approach to evaluating the economic efficiency of Li-ion battery storage. We use our model to quantify the increase in self-consumption of electricity from a solar photovoltaic system by means of a home battery storage system. Regarding battery aging, we find that the longest battery lifetimes can be achieved with the highest state-of-charge limit, which is, however, not economically efficient due to limited self-consumption. Although one of the three battery pooling concepts was identified as not being economically efficient, namely the case of Sonnen, our evaluation shows that economic efficiency can, in principle, be achieved with home battery pooling concepts. In future research, the model-based impacts on self-consumption and battery-aging found here ought to be validated by using real world data from the systems analyzed.

Keywords: Solar photovoltaics, Battery storage, Battery aging, Home battery pooling, Cost effectiveness

JEL Classification: Q40, Q42

Suggested Citation

Vonsien, Silvia and Madlener, Reinhard, Cost-Effectiveness of Li-Ion Battery Storage with a Special Focus on Photovoltaic Systems in Private Households (February 1, 2018). FCN Working Paper No. 02/2018. Available at SSRN: https://ssrn.com/abstract=3335106 or http://dx.doi.org/10.2139/ssrn.3335106

Silvia Vonsien

RWTH Aachen University ( email )

Templergraben 55
52056 Aachen, 52056
Germany

HOME PAGE: http://www.rwth-aachen.de

Reinhard Madlener (Contact Author)

RWTH Aachen University ( email )

School of Business and Economics / E.ON ERC
Mathieustra├če 10
Aachen, 52074
Germany
+49 241 80 49 820 (Phone)
+49 241 80 49 829 (Fax)

HOME PAGE: http://www.eonerc.rwth-aachen.de/fcn

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