Optimization of Solar Energy and Battery Storage Integration: Economic Benefits, Government Policies, and Emissions Reductions in New Jersey

Abstract

This paper discusses optimum battery energy storage systems (BESS) with existing solar sites, using real-world data from New Jersey. The model developed in this paper identifies the optimum capacity and daily operation of a BESS such that the revenue from the PV and battery system is maximized. The optimization is subject to a series of constraints and parameters, such as solar production, demand, land available, battery and solar efficiency, installation costs, and grid interconnection available. Furthermore, this paper includes recent government policies such as the federal Inflation Reduction Act and the New Jersey Storage Incentive program in the optimization problem. Its purpose is to demonstrate the impact of these policies and incentives on the economics of integrating a BESS into a solar site. Additionally, this paper models possible reduced curtailment of the solar site when a BESS is present Lastly, the results of the model are used to inform New Jersey developers and utilities of possible opportunities to retire peaker power plants and reduce emissions by including battery storage systems in their portfolio. Applying this battery optimization model to data from solar sites reveals that there exist real opportunities to both increase the revenue of the sites, reduce the curtailment of the solar site, as well as abate emissions from New Jersey’s grid.