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Evaluating the Reliability Value of Distributed PV+Storage against Household Blackout

Distributed energy resource (DER) has been proven as an effective and promising solution to enhance power system resilience and improve household-level reliability. In this paper, we propose a method for evaluating the reliability value of photovoltaic (PV) + battery storage system (BSS) when considering the probability of grid outages leading to household blackouts. Considering such reliability value, economic profit and capital cost of PV+BSS, a simple formula is derived to calculate the optimal planning strategy. This strategy can provide household-level customers with a simple and straightforward expression of invested PV+BSS capacity. Based on 600 households in 8 zones of the U.S. from 2006 to 2015, case studies demonstrate that by adding reliability value on top of economic profit, households can invest in larger PV+BSS to avoid loss of load caused by blackouts. Due to the difference in blackout hours, the households from 8 zones show distinct willingness to install PV+BSS. In the northwest, for example, PV+BSS can offer households with the maximum annual reliability value and total revenue up to $ 251.13 and $ 115.48, respectively.