Economics of Grid-Tied Solar Photovoltaic Systems Coupled to Heat Pumps: The Case of Northern Climates of the US and Canada

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Journal Title
Journal ISSN
Volume Title
A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä
Date
2021-02
Major/Subject
Mcode
Degree programme
Language
en
Pages
17
Series
Energies, Volume 14, issue 4
Abstract
Solar photovoltaic (PV) technology is now a profitable method to decarbonize the grid, but if catastrophic climate change is to be avoided, emissions from transportation and heating must also decarbonize. One approach to renewable heating is leveraging improvements in PV with heat pumps (HPs). To determine the potential for PV+HP systems in northern areas of North America, this study performs numerical simulations and economic analysis using the same loads and climate, but with local electricity and natural gas rates for Sault Ste. Marie, in both Canada and U.S. Ground-mounted, fixed-tilt, grid-tied PV systems are sized to match 100% of electric loads considering cases both with and without air source HPs for residences with natural gas-based heating. For the first time the results show North American residents can profitably install residential PV+HP systems, earning up to 1.9% return in the U.S. and 2.7% in Canada, to provide for all of their electric and heating needs. Returns on PV-only systems are higher, up to 4.3%; however, the PV capacities are less than half. These results suggest northern homeowners have a clear and simple method to reduce their greenhouse gas emissions by making an investment that offers a higher internal rate of return than savings accounts, CDs and GICs in both countries. Residential PV and solar-powered heat pumps can be considered 25-year investments in financial security and environmental sustainability.
Description
Keywords
photovoltaic, heat pumps, electrification, solar energy, renewable energy, northern climate, solar-assisted heat pumps, sustainable energy, net zero, greenhouse gas emissions
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Citation
Pearce, J M & Sommerfeldt, N 2021, ' Economics of Grid-Tied Solar Photovoltaic Systems Coupled to Heat Pumps : The Case of Northern Climates of the US and Canada ', Energies, vol. 14, no. 4, 834 . https://doi.org/10.3390/en14040834