Optimal Residential Battery Storage Sizing Under ToU Tariffsand Dynamic Electricity Pricing

The integration of renewable energy sources, particularly solar photovoltaics,into household power supply has become increasingly popular due to its potential toreduce energy costs and environmental impact. However, solar power variability andnew regulative changes concerning excess solar energy compensation schemes call foreffective energy storage management and sizing to ensure a stable and profitable electricitysupply. This paper focuses on optimizing residential battery storage systems under differ-ent electricity pricing schemes such as time-of-use tariffs, dynamic pricing, and differentexcess solar energy compensation schemes. The central question addressed is how differ-ent pricing mechanisms and compensation strategies for excess solar energy, as well asvarying battery storage investment costs, determine the optimal sizing of battery storagesystems. A comprehensive mixed-integer linear programming model is developed to ana-lyze these factors, incorporating various financial and operational parameters. The modelis applied to a residential case study in Croatia, examining the impact of monthly net meter-ing/billing, 15 min net billing, and dynamic pricing on optimal battery storage sizing andeconomic viability.