Profitability of energy storage systems in the residential sector : an analysis of energy storage systems in Finland

Abstract

This thesis focuses on the economic viability of residential energy storage systems (ESS) with integrated photovoltaic (PV) systems in Finland. The thesis evaluates how market conditions, policy structures and technical specifications influence the economic performance of small-scale battery storage solutions for private homeowners. The study uses hourly data of household electricity consumption, solar energy production and spot prices to create an Excel model of a PV-battery system located in the city of Helsinki. Despite self-sufficiency and self-consumption rates of 52.4% and 45.6% respectively, the payback period of the system’s investment spanned over 60 years due to the lack of subsidies and compensation for exported energy. The study explains that policy incentives, the structure of tariffs and seasonal variations are key in deciding whether it is economically viable to invest in a home energy storage system. The findings of this thesis indicate that ESSs are not a financially attractive option for homeowners in the current state of the energy market. However, policy reforms to further incentivise the use of these systems could make them much more attractive and increase the speed in which they are deployed in homes in Finland.