Residential Energy Arbitrage with BESS under Transformer Longevity and Load Constraints

Document Type

Conference Proceeding

Publication Date

12-9-2025

Department

Department of Electrical and Computer Engineering

Abstract

Energy arbitrage at the household level allows residents to reduce electricity costs by storing energy during off-peak hours and using it during peak periods. This methodology focuses on financial sustainability through the integration of a stationary Battery Energy Storage System (BESS), such as a Tesla Powerwall, to support both home loads and electric vehicle (EV) charging. Since EV batteries are typically four to six times larger than a home BESS unit, coordinated energy use is essential. The framework accounts for nonlinear household loads and system losses, including inverter inefficiencies and battery degradation, which affect overall cost. A Genetic Algorithm (GA) optimizes charge and discharge schedules based on electricity pricing, renewable availability, and battery state of health. It also helps determine the optimal number of BESS units to deploy, balancing upfront cost with long-term savings. Simulation results show reduced utility bills, improved power reliability, and strong economic justification for home BESS investment.

Publication Title

2025 57th North American Power Symposium (NAPS)

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