Modelling the Effect of Photovoltaics and Battery Storage on Electricity Demand : Implications for Tariff Structures

Abstract: This project examines the implications of the photovoltaic power generation as well as the battery storage systems on the distribution network tariff structures. Different types of existing distribution tariffs were applied to the residential households’ demand patterns. Several scenarios of demand profiles were theoretically investigated. First scenario included households’ consumption under current situation without on-site power production and any storage, second scenario concerned penetration of average size of solar panel installations and the last demand profile with maximum possible size of photovoltaic panels complemented with battery storage use. The distribution tariffs included in the comparison are: power based tariff and two energy based tariffs, one with flat-rate and another with time-of-use structure. Distribution tariffs were normalized with the aim to research the implications of the on-site production and storage use. Normalization factors were used when comparing financial bills from the households under above mentioned scenarios. Energy distribution tariffs have higher potential for households to save on their energy bill with the introduction of the on-site solar power utilization. On the other hand power tariff provides higher incentive for the implementation of the demand response strategies in the households.