Energy Management Strategy for Cost Minimization under Time of Use Pricing for Residential Application

Abstract

This paper presents an energy management strategy for residential applications that utilize energy from the grid as well as energy generated from PV panels. With the implementation of this strategy, the consumers can save money on the electricity bill to be paid to the utility under Time of Use pricing. With the implementation of Time of Use pricing by the utilities, charges of energy consumption will be different at a different time of the day and the consumers will be charged according to the tariff set for a particular time when the energy is consumed. The system model considered in this paper has two power sources, PV and grid supply. The loads connected in the system are scheduled in such a way that it is supplied by the PV as much as possible instead of the supply from the grid so that the charges to be paid to the utility can be minimized. In this paper, the energy from PV, grid, and energy from discharging and charging of the battery is considered.