Mitigating the impact of distributed PV in a low-voltage grid using electricity tariffs

A high share of distributed photovoltaic (PV) generation in low-voltage networks may lead to over-voltage, and line/transformer overloading. To mitigate these issues, we investigate how advanced electricity tariffs could ensure safe grid operation while enabling building owners to recover their investment in a PV and storage system. We show that dynamic volumetric electricity prices trigger economic opportunities for large investments in PV and battery capacity but lead to more stress on the grid while capacity and block rate tariffs mitigate over-voltage and decrease line loading issues. However, block rate tariffs significantly decrease the optimal PV installation size.