Integration of small-scale batteries into future electricity markets

In terms of the economic performance of residential PV systems, the rate of onsite-consumed electricity (i.e. self-consumption) is becoming ever more important. In order to increase self-consumption, battery systems are available, which allow to match electricity generation and consumption. However, relatively small batteries are sufficient to improve self-consumption, and further increases in capacity only lead to small additional self-consumed amounts. Nevertheless, the evolving market offers different additional options to increase profitability and usage of a battery system by offering flat rates or providing balancing power. The business case that provides balancing power achieves an interest rates of 2.1% (compared to 8% without a battery). Under favourable future conditions, such as increasing household consumption, electricity or balancing power prices, a PV + battery system can be a competitive investment for consumers and the systems' effect on household load profiles has to be considered in the management of balancing groups.