Techno-economic analysis of residential battery energy storage systems

The next generation of residential sector smart-grid systems will employ a dedicated battery energy storagesystem (BESS) to aid electricity grid operators in managing the fluctuations of renewable energy. The BESS isintegrated with the electricity grid and has several advantages compared to existing electric thermal storage: (i)it can be used year-round to provide utility services such as demand/generation shifting, ramp-ratecompensation, and peak/valley demand mitigation; (ii) it is bi-directional, offering the opportunity to bothcharge and discharge electricity, and to conduct energy arbitrage; (iii) it is highly controllable with respect tocharge/discharge power; and (iv) it is zero maintenance, has no moving parts, is sealed, and is highly efficient.Unfortunately, a residential BESS suffers from several negative attributes: (i) it has limited life; (ii) it takes upvaluable floor space; and (iii) due to its dedicated nature it must provide economic benefit to homeowners to beconsidered for purchase.There exists a need for new research to determine the economic feasibility of residential BESS systems. Thisproject proposes a techno-economic study of residential BESS operating within the framework of the electricityutility net-metering and time-of-day tariff schemes. The principal objective of this modeling study is to identifynominal BESS sizes and operating profile and to conduct feasibility sensitivity analysis as a function of presentand projected electricity tariffs. The findings of this study will provide evidence to warrant (or not) the furtherR&D of such BESS systems as well as a tariff to support them.