Economic Sizing of Batteries for the Smart Home: Preprint

Research output: Contribution to conferencePaper


This paper presents a methodology to economically size a home battery based on parametric analysis using home energy management system (HEMS) software to optimally dispatch the battery along with controllable loads under several use cases. We account for connected equipment, controls, renewable resources, and other factors such as building characteristics and utility tariffs. The paper defines an analytical pathway for such a sizing tool, develops initial sizing guidance, and clarifies technical and market opportunities for home batteries in the context of existing and emerging equipment and control technologies. A parametric analysis that included 132 scenarios has been performed based on different combinations of pertinent parameters. Results indicate that four variables dominate the decision-making process: application scenarios (new construction or retrofit), utility tariffs, existence of HEMS, and the anticipated payback time. Life-cycle cost analysis indicated that in the absence of utility incentives, batteries plus HEMS have a payback time of longer than 10 years for new construction under a time-of-use rate structure and feed-in tariff; larger batteries have a longer payback time but may provide more benefits to utilities on reducing power backfeed under certain circumstances.
Original languageAmerican English
Number of pages13
StatePublished - 2018
Event5th International High Performance Buildings Conference - West Lafayette, Indiana
Duration: 9 Jul 201812 Jul 2018


Conference5th International High Performance Buildings Conference
CityWest Lafayette, Indiana

NREL Publication Number

  • NREL/CP-5500-71619


  • battery
  • buildings
  • home energy management system
  • smart home


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