PROSUMER DILEMMA: DOES CHOOSING NET BILLING LOWER HOUSEHOLD ELECTRICITY COSTS?
Aim: The study generates information about the expected electricity costs under several scenarios including PV panel and storage battery additions using the case of a rural prosumer operating a micro-PV installation and faced with a decision to switch to the new net-billing (NB) system or continue with net-metering (NM) (given the new subsidy for a storage battery). Methods: The benchmark data about prosumer electricity production and use and predicted electricity prices for the 15-year period serve to calculate future changes in electricity costs under alternative scenarios, including a household without a micro-PV installation. The prosumer cost for electricity used is calculated using the Levelized Cost of Electricity (LCOE) and the modified LCOEC accounting for consumption (LCOEC). Results: The average electricity price is estimated at 2.33 PLN/kWh in 2037 (almost three times more than in 2022). A similar increase is calculated for prices using the G12 tariff applied to households. The prosumer flexibility in electricity self-consumption determines the advantage of a storage battery, but the subsidy for a micro-PV installation is crucial. Without the subsidy, having a micro-PV installation with a storage battery in the NB system would not lower the LCOEC as compared to the NB scenario without storage. Conclusions: The NB system is associated with higher electricity bills than the NM system, although owning a micro-PV installation still lowers electricity costs as compared to a household without it. The adoption of micro-PV installations by households is likely to continue, albeit at a slower rate than in recent years.
Authors
- Wojciech J. Florkowski (ORCID: https://orcid.org/0000-0003-1947-2182)
- Anna M. Klepacka (ORCID: https://orcid.org/0000-0002-2828-5429)
- Piotr Mielziuk
Institutions
- University of Georgia (US)
- Warsaw University of Life Sciences (PL)
- Institute of Rural and Agricultural Development (PL)
- Polish Academy of Sciences (PL)
Publication Details
- Journal
- Acta Scientiarum Polonorum - Oeconomia
- Published
- 2024-09-30
- DOI
- https://doi.org/10.22630/aspe.2024.23.3.10
- Primary Topic
- Energy and Environment Impacts
- Type
- article
- Field-Weighted Citation Impact
- 0.00