Economic analysis of commercial PV microgrids

Abstract

In this paper, we analyze the economics of a behind-the-meter solar powered DC microgrid in a commercial building under a net metering tariff and also for the case in which power cannot be fed into the grid. Based on the building size, we design the microgrid system in different combinations of PV-battery sizes. We also incorporate three different pricing models, two occupancy rates and three different pricing years in 5-year increments. The microgrid system is designed to operate in order to minimize the operating cost in battery flow control, while subjected to operating physical constraints. Looking into the optimal solution, we are interested in the battery flow in relation to the TOU rate in winter and summer seasons, hourly supply and demand curve in both 50% and 100% occupancy rates. After computing optimal daily saving in each month, annual cost saving for each scenario is determined by the weighted average of monthly cost saving.