Techno-Economic Optimization of a Grid-Connected Hybrid-Storage-Based Photovoltaic System for Distributed Buildings

Abstract

With growing urban populations and rapid technological advancement, major cities worldwide are facing pressing challenges from surging energy demands. Interestingly, substantial unused space within residential buildings offers potential for installing renewable energy systems coupled with energy storage. This study innovatively proposes a grid-connected photovoltaic (PV) system integrated with pumped hydro storage (PHS) and battery storage for residential applications. A novel optimization algorithm is employed to achieve techno-economic optimization of the hybrid system. The results indicate a remarkably short payback period of about 5 years, significantly outperforming previous studies. Additionally, a threshold is introduced to activate pumping and water storage during off-peak nighttime electricity hours, strategically directing surplus power to either the pump or battery according to system operation principles. This nighttime water storage strategy not only promises considerable cost savings for residents, but also helps to mitigate grid stress under time-of-use pricing schemes. Overall, this study demonstrates that, through optimized system sizing, costs can be substantially reduced. Importantly, with the nighttime storage strategy, the payback period can be shortened even further, underscoring the novelty and practical relevance of this research.