Hydrogen vs. conventional sector-coupling residential energy systems: An economic and environmental comparison based on multi-objective design optimization

Planning residential energy systems faces economic, environmental, and technical challenges, necessitating cost-effective and environmentally friendly solutions. Hydrogen technologies in districts have recently gained interest. However, their economic and environmental potential relative to conventional technologies remains largely unexplored. Therefore, we quantitatively compared the impacts of designing hydrogen-based and conventional sector-coupling systems on total costs and CO2 emissions. We developed a multi-objective optimization model for the design and operation of generation and storage units, aiming to minimize total costs and CO2 emissions. We created three energy system configurations for an exemplary German district, each involving photovoltaics, heat storage, and batteries, while varying the main heat supplier. The first configuration includes a gas combined heat and power unit, the second features a heat pump, and the third incorporates a fuel cell, an electrolyzer, and hydrogen storage. Our comparison of the Pareto fronts revealed that the hydrogen system’s cost is 83% higher than the gas-based system and 33% higher than the heat-pump-based system. Environmentally, the hydrogen system emits 11% less than the gas-based system but 47% more than the heat-pump-based system. In conclusion, hydrogen units offer environmental benefits through improved photovoltaic utilization but perform poorly economically due to high investment and operating costs.