Analyzing the Impact of Electricity Rates on the Feasibility of Solar PV and Energy Storage Systems in Commercial Buildings: Financial vs. Resilience Perspective

Abstract

The use of solar photovoltaic (PV) generation and battery energy storage (BES) systems in commercial buildings has been increasing significantly in recent years. Most of these systems, however, are designed to solely minimize the investment and operation costs. With the increasing concerns about high-impact low-probability (HILP) events, such as natural disasters, and their impact on power system resilience, there is a substantial need to integrate outage risks in power system infrastructure planning problems. This paper examines the impact of various electricity rates on the feasibility of PV and BES systems in commercial buildings for financial and resilience purposes. Simulation studies are conducted using the Renewable Energy Integration & Optimization (REopt) decision support software to optimize the size of solar PV and BES systems for both financial and resilience purposes, considering different combinations of geographic locations, load profiles, electricity rates, and outage durations. The feasibility assessment is conducted by analyzing and comparing the net present value (NPV) for each combination of parameters.

Keywords

• buildings
• energy storage systems
• net present value (NPV)
• power system resilience
• solar photovoltaic (PV)