Costs of Residential Solar PV Plants in Distribution Grid Networks

In this article we investigate the impact of residential solar PV plants on energy losses in distribution networks and their impact on distribution transformers lifetime. Current guidelines in Denmark states that distribution transformers should not be loaded with more than 67% solar PV power to avoid accelerated loss of life. If a solar PV plant causes this limit to be exceeded, the particular owner has to pay for upgrading the transformer. Distribution Network Operators also charge an annual tariff from the solar PV plants to cover the expenses to keep the grid capacity available, the so called “Availability Tariff”. According to the Danish Energy Regulatory Authority, the Availability Tariff must cover the exact expenses, with energy savings etc. from the solar PV plants taken into consideration. Our conclusion is that a distribution network, which represents a typical residential network, can handle up to 110-120% of the transformer nominal ratings before the value of solar PV plants in the distribution network becomes negative. The results suggest that from a technical perspective the aforementioned limit can be increased from 67 to 100%