Optimal Residential Battery Storage Sizing Under ToU Tariffs and Dynamic Electricity Pricing

The integration of renewable energy sources, particularly solar photovoltaics, into household power supply has become increasingly popular due to its potential to reduce energy costs and environmental impact. However, solar power variability and new regulative changes concerning excess solar energy...

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Main Authors: Damir Jakus, Joško Novaković, Josip Vasilj, Danijel Jolevski
Format: Article
Language:English
Published: MDPI AG 2025-05-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/18/9/2391
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author Damir Jakus
Joško Novaković
Josip Vasilj
Danijel Jolevski
author_facet Damir Jakus
Joško Novaković
Josip Vasilj
Danijel Jolevski
author_sort Damir Jakus
collection DOAJ
description The integration of renewable energy sources, particularly solar photovoltaics, into household power supply has become increasingly popular due to its potential to reduce energy costs and environmental impact. However, solar power variability and new regulative changes concerning excess solar energy compensation schemes call for effective energy storage management and sizing to ensure a stable and profitable electricity supply. This paper focuses on optimizing residential battery storage systems under different electricity pricing schemes such as time-of-use tariffs, dynamic pricing, and different excess solar energy compensation schemes. The central question addressed is how different pricing mechanisms and compensation strategies for excess solar energy, as well as varying battery storage investment costs, determine the optimal sizing of battery storage systems. A comprehensive mixed-integer linear programming model is developed to analyze these factors, incorporating various financial and operational parameters. The model is applied to a residential case study in Croatia, examining the impact of monthly net metering/billing, 15 min net billing, and dynamic pricing on optimal battery storage sizing and economic viability.
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institution OA Journals
issn 1996-1073
language English
publishDate 2025-05-01
publisher MDPI AG
record_format Article
series Energies
spelling doaj-art-73cdc15164fa4d6d91c48d9ecac92d7c2025-08-20T01:50:45ZengMDPI AGEnergies1996-10732025-05-01189239110.3390/en18092391Optimal Residential Battery Storage Sizing Under ToU Tariffs and Dynamic Electricity PricingDamir Jakus0Joško Novaković1Josip Vasilj2Danijel Jolevski3Department of Power Engineering, Faculty of Electrical Engineering, Mechanical Engineering and Naval Architecture, University of Split—FESB, Ruđera Boškovića 32, 21000 Split, CroatiaDepartment of Power Engineering, Faculty of Electrical Engineering, Mechanical Engineering and Naval Architecture, University of Split—FESB, Ruđera Boškovića 32, 21000 Split, CroatiaDepartment of Power Engineering, Faculty of Electrical Engineering, Mechanical Engineering and Naval Architecture, University of Split—FESB, Ruđera Boškovića 32, 21000 Split, CroatiaDepartment of Power Engineering, Faculty of Electrical Engineering, Mechanical Engineering and Naval Architecture, University of Split—FESB, Ruđera Boškovića 32, 21000 Split, CroatiaThe integration of renewable energy sources, particularly solar photovoltaics, into household power supply has become increasingly popular due to its potential to reduce energy costs and environmental impact. However, solar power variability and new regulative changes concerning excess solar energy compensation schemes call for effective energy storage management and sizing to ensure a stable and profitable electricity supply. This paper focuses on optimizing residential battery storage systems under different electricity pricing schemes such as time-of-use tariffs, dynamic pricing, and different excess solar energy compensation schemes. The central question addressed is how different pricing mechanisms and compensation strategies for excess solar energy, as well as varying battery storage investment costs, determine the optimal sizing of battery storage systems. A comprehensive mixed-integer linear programming model is developed to analyze these factors, incorporating various financial and operational parameters. The model is applied to a residential case study in Croatia, examining the impact of monthly net metering/billing, 15 min net billing, and dynamic pricing on optimal battery storage sizing and economic viability.https://www.mdpi.com/1996-1073/18/9/2391battery storage sizingtime-of-use tariffdynamic pricingnet meteringnet billingmixed-integer linear programming
spellingShingle Damir Jakus
Joško Novaković
Josip Vasilj
Danijel Jolevski
Optimal Residential Battery Storage Sizing Under ToU Tariffs and Dynamic Electricity Pricing
Energies
battery storage sizing
time-of-use tariff
dynamic pricing
net metering
net billing
mixed-integer linear programming
title Optimal Residential Battery Storage Sizing Under ToU Tariffs and Dynamic Electricity Pricing
title_full Optimal Residential Battery Storage Sizing Under ToU Tariffs and Dynamic Electricity Pricing
title_fullStr Optimal Residential Battery Storage Sizing Under ToU Tariffs and Dynamic Electricity Pricing
title_full_unstemmed Optimal Residential Battery Storage Sizing Under ToU Tariffs and Dynamic Electricity Pricing
title_short Optimal Residential Battery Storage Sizing Under ToU Tariffs and Dynamic Electricity Pricing
title_sort optimal residential battery storage sizing under tou tariffs and dynamic electricity pricing
topic battery storage sizing
time-of-use tariff
dynamic pricing
net metering
net billing
mixed-integer linear programming
url https://www.mdpi.com/1996-1073/18/9/2391
work_keys_str_mv AT damirjakus optimalresidentialbatterystoragesizingundertoutariffsanddynamicelectricitypricing
AT joskonovakovic optimalresidentialbatterystoragesizingundertoutariffsanddynamicelectricitypricing
AT josipvasilj optimalresidentialbatterystoragesizingundertoutariffsanddynamicelectricitypricing
AT danijeljolevski optimalresidentialbatterystoragesizingundertoutariffsanddynamicelectricitypricing