An innovative viable model for community owned solar PV projects without FIT: Comprehensive Techno-Economic Assessment

Journal article


Mirzania,P, Balta-Ozkan, N. and Ford, A. (2020). An innovative viable model for community owned solar PV projects without FIT: Comprehensive Techno-Economic Assessment. Energy Policy. 146, p. 111727. https://doi.org/10.1016/j.enpol.2020.111727
AuthorsMirzania,P, Balta-Ozkan, N. and Ford, A.
Abstract

The progressive withdrawal of the Feed-in-Tariff provided by the UK government has left community-owned
solar photovoltaic projects facing significant financial challenges. They urgently need to develop alternative
business models that will enable them to develop new projects and recuperate their costs in this post-subsidy
era. One promising possibility is the incorporation of storage technology. However, currently it cannot be
denied that the financial viability of this type of model is in question. This paper investigates whether and how
integrated solar and battery storage system would be financially viable, using the System Advisor Model as a
simulation tool to conduct techno-economic analyses.
This paper proposes an innovative model designated as, the ‘Community-owned Energy Storage’ model. This
model proposes that community-owned solar projects should sell their locally generated electricity under a Time
of Use Power Purchase Agreement (TOU PPA). Results demonstrated under the developed model of
community-owned solar projects can fully restore the economic viability and become financially attractive if
they could utilise a combination of TOU PPA and demand-side response (DSR) services. This paper, therefore,
recommends that the UK government should promote and facilitate the TOU PPA and encourage suppliers to
involve local energy projects within the provision of DSR.

KeywordsTechno-economic analysis; community-owned solar PV; Battery storage; Business model; Demand side response
Year2020
JournalEnergy Policy
Journal citation146, p. 111727
PublisherElsevier
ISSN0301-4215
Digital Object Identifier (DOI)https://doi.org/10.1016/j.enpol.2020.111727
Publication dates
Print06 Sep 2020
Publication process dates
Accepted12 Aug 2020
Deposited12 Aug 2020
Accepted author manuscript
License
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Open
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