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@ARTICLE{Kuckshinrichs:1007313,
author = {Kuckshinrichs, Wilhelm and Ball, Christopher and Aniello,
Gianmarco},
title = {{L}evelized profits for residential {PV}-battery systems
and the role of regulatory and fiscal aspects in {G}ermany},
journal = {Energy, Sustainability and Society},
volume = {13},
number = {1},
issn = {2192-0567},
address = {Heidelberg},
publisher = {Springer},
reportid = {FZJ-2023-02003},
pages = {10},
year = {2023},
abstract = {The levelized cost of electricity (LCOE), expressing the
price per unit that a technology must receive over its
lifetime to break even, is a useful indicator, but
insufficient for a comprehensive investment appraisal of
PV-battery (PV-BES) projects. For household PV-BES systems,
aimed at prosumers in the German context, our paper seeks to
look at the revenue side in addition to the costs side of
the investment decision. We extend the LROE (levelized
revenue of electricity) to consider the impact of different
fiscal options available to households seeking to install
PV-BES systems. From this, we calculate the levelized profit
of electricity (LPOE), linking the cost-focused and
revenue-focused perspectives of prosumers facing investment
options. We calculate the LPOE for six different fiscal
options available to prosumers, four household types with
different socio-economic characteristics and for different
sizes of PV-BES systems.In terms of preliminary results, we
identify the most advantageous fiscal option and the drivers
of LPOE in relation to PV-BES systems in Germany. We find
that the switching from the standard to small business tax
setup is the optimal fiscal option for all households and
all technology combinations, but the optimal income tax
decision depends on the present value of revenues compared
to tax deductibles. The LPOE is particularly sensitive to
changes in CAPEX and retail electricity prices, with the FiT
rate, VAT rate and Income Tax rate being somewhat
influential. From an LPOE perspective, self-consumption is
incentivized through lower FiT rates and higher electricity
prices, whereas the abolition of the EEG contribution and
low FiT rate adversely affect the LPOE of different options.
Stand-alone PV remains the most attractive option, with
bundles with storage showing weaker profitability
performance.LPOE complements the LCOE and LROE indicators
and offers a comprehensive investment analysis, integrating
fiscal considerations. Moreover, it offers greater guidance
as to the relative attractiveness of different technology
configurations and technology sizing. Mechanisms could be
implemented to enhance the profitability of residential
PV-BES systems in line with energy policy objectives.},
cin = {IEK-STE / UE},
ddc = {333.7},
cid = {I:(DE-Juel1)IEK-STE-20101013 / I:(DE-Juel1)UE-20120423},
pnm = {1112 - Societally Feasible Transformation Pathways
(POF4-111)},
pid = {G:(DE-HGF)POF4-1112},
typ = {PUB:(DE-HGF)16},
UT = {WOS:000984695000001},
doi = {10.1186/s13705-023-00390-8},
url = {https://juser.fz-juelich.de/record/1007313},
}