Economics | Definition, History, Examples, Types, & Facts
In the 20th century, English economist Lionel Robbins defined economics as “the science which studies human behaviour as a relationship between (given) ends and scarce means which
Technology cost and utility rate structure are key drivers of economic viability of solar and storage systems. This paper explores the economics of solar-plus-storage projects for commercial-scale, behind-the-meter applications. It provides insight into the near-term and future solar-plus-storage market opportunities across the U.S.
Our results indicate that potential for savings from combining solar with storage is independent of building load variability, likely due to the energy cost reductions from the solar. Systems are more often economical under time of use and demand charge rates, particularly when demand charges are >$10 per kilowatt.
This work focuses on the emerging market for distributed solar PV paired with battery energy storage (“solar-plus-storage”) in commercial buildings across the United States.
Solar generation primarily provides energy savings, while storage primarily provided demand savings, so both components of the rate affect expected savings of solar-plus-storage systems. Fig. 9, Fig. 10 show how savings increase as these components of the rate increase. Fig. 9.
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