Economic Efficiency of Residential Storage in Germany

According to estimates, taking a 10 kW residential PV system in Germany as an example, with a storage capacity ratio of 20% and a duration of 4 hours, and based on the cost assumptions and other conditions outlined in the table below, the PV system combined with storage can fully cover household electricity consumption, resulting in annual electricity bill savings of €1,515.7. Residential PV-plus-storage systems have already demonstrated strong economic viability. Based on the calculations, the internal rate of return (IRR) for PV-plus-storage is 18.58%, with a payback period of 6.203 years. With such favorable economics, a rapid increase in market penetration is within reach.