Optimal battery chemistry, capacity selection, charge/discharge schedule, and lifetime of energy storage under time-of-use pricing

Optimal battery configuration in a residential home with time-of-use pricing

“…Several studies [4], [5], [3], [6] have investigated this idea in the residential domain and formulated optimization problems to maximize the energy cost savings. The amount of cost savings depends on how well the price difference can be used and the initial deployment cost of the batteries.…”

“…The amount of cost savings depends on how well the price difference can be used and the initial deployment cost of the batteries. Previous studies formulate the cost savings as the main optimization goal and find the capacity that maximizes the savings function [4], [5]. Additionally, some studies solve the battery capacity problem while including renewable energy from solar [3].…”

“…However, battery sizing and usage are not decoupled and should not be considered separately. Barnes et al [4] combine battery sizing and scheduling for different battery technologies.…”

“…Time of use pricing has a peak price during the day, , and an off-peak price [4], during the night. As a result, the battery is charged during the night and discharged during the day, when the energy demand of the house is actually higher.…”

“…This monitoring enables smarter technologies to be deployed in residential domain, e.g. load shifting [2], peak shaving [3], voltage regulation [3], energy arbitrage [4], etc. Load shifting [2] classifies the demand of a house as deferrable and nondeferrable and enables rescheduling of the deferrable demand.…”