Feed-in tariff design for domestic scale grid-connected PV systems using high resolution household electricity demand data

The advent of large samples of smart metering data allows policymakers to design Feed-in Tariffs which are more targeted and efficient. This paper presents a methodology which uses these data to design FITs for domestic scale grid-connected PV systems in Ireland. A sample of 2551 household electricity demand data collected at 1/2-hourly intervals, electricity output from a 2.82 kW_p PV system over the same time interval as well as PV system costs and electricity tariffs were used to determine the required FIT to make it worthwhile for the households to invest in the PV system. The methodology shows that it is possible to design single, multiple and continuous FITs. Continuous FITs are the most efficient and result in no overcompensation to the housholder while single and multiple FITs are less efficient since they result in different levels of overcompensation. In the PV case study considered, it was shown that the use of three FITs (0.3170, 0.3315 and 0.3475 €/kW h) resulted in a 59.6% reduction in overcompensation compared to a single FIT of 0.3475 €/kW h; assuming immediate and complete uptake of the technology, this would result in NPV savings of over €597 m to the Irish government over a 25 year lifetime.