Virtual or Real Battery: Making the Correct Decision Based on Data Analytics

Abstract

Carlos Armenta Deu*

This paper examines the household decision between installing batteries in a domestic photovoltaic installation and utilizing the grid as a virtual battery to supply power to the house when necessary. The paper analyzes the advantages and drawbacks of each option, both technical and economic, based on a standard photovoltaic installation with and without a grid connection, helping the homeowner make the correct decision. To this goal, the paper applies a data analytic procedure, simulating an operational process and comparing theoretical results with experimental data from an existing domestic installation. The study concludes that there is no one-size-fits-all solution, as many factors come into play in the analysis: the level of energy surpluses, the energy-selling price, battery cost and maintenance, the home use, and the coverage factor by the actual storage system in the facility. Despite this apparent uncertainty, the article provides practical rules to make the right decision between battery installation (real) and grid connection (virtual).

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