An Assessment of Different Electricity Tariffs on Residential Photovoltaic System Profitability: Australian Case Study

Abstract

The smart grid vision includes demand response mechanisms for managing the load demand at residential and commercial premises, with the active participation of end users. Peak load demand can be managed autonomously and/or through the integration of distributed energy resources such as solar and wind. While the former can lead to enhanced end user cost benefits along with power system stability; the latter also promotes the use of sustainable energy through reduced carbon dioxide emissions. Various pricing schemes have been proposed in the literature, electric utility companies have adopted dynamic pricing plans to encourage their customers to reduce their demand during peak times. In this paper, a comprehensive assessment of the impact of different electricity tariffs on the profitability of residential PV systems has been performed. HOMER Grid software is utilized to study the impact of electricity regulator s policies and utility tariffs on the electric utilities. The results presented in this work can be used as a benchmark for energy retailers and decision makers in designing their tariffs and PV Support policies.