2023/01/31 by Na Rea Cho, Youngsoo Kim, Karthik Murali +1
Energy · Engineering · #Electric Vehicles and Infrastructure #Energy, Environment, and Transportation Policies #Smart Grid Energy Management
paper · pdf · doi:10.1111/deci.12589
crossref issued 2023/01/31 · crossref published 2023/01/31 · crossref published-online 2023/01/31 · openalex publication_date 2023/01/31 · crossref created 2023/01/31 · crossref published-print 2024/08/01 · crossref deposited 2024/11/19 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/26 · crossref indexed 2026/07/26
Abstract Residential consumers are increasingly combining renewables with energy storage systems. However, changes in policies and support for these technologies may impact their adoption and the outlook for the energy industry. In this paper, we consider a grid‐connected household's problem of determining the optimal capacities of these two technologies as well as the battery operating policy that minimizes its electricity costs when faced with time‐of‐use electricity prices and sellback credits. We identify the impact of household characteristics, technological progress, and electricity pricing policies on the levels of investment in these two technologies. Furthermore, we supplement our analytical results with a case study of two U.S. cities and identify policy guidelines for the design of a technology subsidy program aimed at stimulating the adoption of these technologies and the ensuing implications for residential customers, the environment, and grid reliability. Our paper has implications for several stakeholders in practice on (i) how the adoption of renewables is affected by energy storage (and vice versa) and (ii) how electricity pricing, technological progress, and subsidy policies can shape the adoption of both technologies.