Engineering Commons^™

Notes On The Economics Of Residential Hybrid Energy System, Mahelet G. Fikru, Gregory M. Gelles, Ana M. Ichim, Joseph D. Smith

Economics Faculty Research & Creative Works

Despite advances in small-scale hybrid renewable energy technologies, there are limited economic frameworks that model the different decisions made by a residential hybrid system owner. We present a comprehensive review of studies that examine the techno-economic feasibility of small-scale hybrid energy systems, and we find that the most common approach is to compare the annualized life-time costs to the expected energy output and choose the system with the lowest cost per output. While practical, this type of benefit—cost analysis misses out on other production and consumption decisions that are simultaneously made when adopting a hybrid energy system. In this paper, …