Techno-economic modeling reveals profitability thresholds for hybrid solar and battery systems, indicating that viability hinges on regulatory capacity payments and ancillary service revenues.
This study presents a techno-economic assessment of utility-scale photovoltaic (PV) installations integrated with Battery Energy Storage Systems (BESSs) in the context of Poland’s energy transition. Three technical configurations are analyzed: a standalone 100 MW PV plant, a standalone 100 MW/500 MWh BESS facility, and a hybrid PV-BESS system. Economic performance is evaluated using Net Present Value (NPV), Internal Rate of Return (IRR), and Levelized Cost of Electricity/Storage (LCOE/LCOS) metrics. Under base-case market conditions, the standalone PV plant remains highly profitable (NPV = €57.2 million, IRR = 15.7%), while standalone storage is economically unviable (NPV = −€102.8 million). The hybrid PV-BESS system also yields a negative NPV (−€46.5 million) in the base case; however, optimization identifies key profitability thresholds. Break-even (NPV = 0, IRR = 6%) is achieved when capacity market revenues increase by 15% above the base rate and annual system service revenues exceed €3.57 million. The results indicate that the long-term viability of hybrid renewable systems in Central Europe is highly sensitive to market dynamics and regulatory support. Increasing the Battery Inverter Ratio (BIR) and Inverter Loading Ratio (ILR) enhances grid stability and energy output, but remains economically favourable only if declining technology costs offset the decreasing marginal market value of PV generation.
No takes yet. Share an insight, caveat, or question.
Bogacki et al. (2026) studied this question.
Synapse has enriched 4 closely related papers on similar clinical questions. Consider them for comparative context: