Description:
To help design policies encouraging renewable energy generation and flexible power systems at the household level, better knowledge about the welfare gains from such technologies is necessary. In this paper, we appraise these gains by considering the optimal behavior of a UK household. Contrary to the existing literature in engineering, we focus on incentives that shape household{'s} electricity consumption, storage, and grid purchases/feed-ins. Regarding public policy at the household's location, our results suggest that while net metering is a must, feed-in tariffs are not essential for the deployment of solar PV by households. Our analysis can be used with ease to assess the welfare gains for prosumers in other locations