EVs Can Halve the Payback Period for Rooftop Solar, Study Shows
Running an electric vehicle alongside rooftop solar can cut the payback period for the solar power system by more than half, according to a study by the Institute for Energy Economic and Financial Analysis (IEEFA) that gauged the impact of policy incentives—and disincentives—in the UK and Germany.
“The report asserts that batteries and EVs can boost the economics of rooftop solar by enabling households to use more of the electricity they produce, thereby increasing power bill savings,” One Step Off The Grid reports.
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“The modelling shows that in Britain—where it currently takes an astounding 19 years to pay off rooftop solar—the payback for a ‘typical’ four-kilowatt rooftop PV system when combined with an eight-kilowatt-hour battery and a small 35-kilowatt-hour EV could be slashed to four years by 2025, and one year in 2030,” the story states. “In Germany, where it currently takes around six years to pay for a rooftop solar system, the same-sized home PV-battery-solar combination would have a three-year payback in 2025, falling to below one year in 2030.”
The picture gets even better with the “seemingly no-brainer regulatory reform” of permitting households to sell their surplus solar electricity to the grid, IEEFA notes.
“Batteries and EVs can boost the economics of rooftop solar, by enabling households to use more of the solar power they produce, thereby increasing savings on their electricity bills,” the report states. “These savings rise over time, as the cost of rooftop solar, batteries, and EVs falls. In addition, we review how regulators can reform grid services markets, to put these technologies on a level playing field with conventional generation, which further boosts income.”
While grid stability wasn’t the focus of the study, IEEFA pointed out that “smarter domestic tariffs” that encourage off-peak power consumption “can further drive demand, as will smarter EV chargers that contribute towards grid stability.”