Interplay between renewable energy factor and levelized costs in PV-driven buildings using hydrogen fuel cell system as an energy storage solution

This study introduces an effective analysis framework for exploring the complex interrelation between the renewable energy factor (REF) and the economic dimensions of a PV-driven microgrid featuring a dual-level storage system that incorporates both hydrogen and electrical energy storage. By establishing a coupled model that integrates dynamic simulations with a statistical multi-objective optimization algorithm, the research aims to achieve optimal component sizing—a critical step in assessing the hybrid system across various REF levels—while effectively reducing the levelized cost of electricity (LCOE). Using the analysis outcomes of a case study, a comprehensive techno-economic assessment facilitates a nuanced evaluation of the interplay between the REF, system economics across various equipment cost quartiles, and grid tariffs, addressing the feasibility of the proposed solution for a sustainable energy transition. The results highlight how grid tariffs and REF jointly influence LCOE values across cost quartiles, impacting hybrid system design and decision-making. An exponential correlation is observed between life cycle cost (LCC) and REF, with the increase in annual operating costs being marginal compared to the initial cost rise. For the net-zero energy case, the LCOE ranges from 0.0380 to 0.1873 $/kWh, while at REF = 0.6, it spans from 0.0461 to 0.1334 $/kWh, reflecting a 71 % larger difference (range). A sensitivity analysis indicates that each 5 % increase in REF leads to an average 20.7 % rise in payback period (PBP) for a given grid tariff. • A framework to explore interplay between REF and economic metrics of hybrid system. • Optimizations trades-off component sizing to achieve desired REF with minimal LCOE. • A dynamic interaction among economic aspects, REF, and grid tariffs iss observed. • Each 10 % increase in renewable share leads to a 39.8 % rise in investment costs. • At REF values below 80 %, grid tariffs have a pronounced impact on the LCOE.