Economic analysis is performed in this paper for Photovoltaic (PV) system operation based on the reality of Fujian power system. Firstly, the basic condition of PV system in Fujian is illustrated and the future development trend is also discussed. Secondly, two typical operation modes of PV system are introduced, namely the “self occupied, margin online” (SOMO) and the “distributed PV + energy storage system” (PV+ESS). Thirdly, the mathematical model of economic analysis for PV operation is proposed for two typical modes, respectively. Finally, a case study is conducted to evaluate the economic characteristic of PV operation mode for different voltage level system. It is illustrated by numerical results that the benefit of SOMO mode is reasonable under current policy while the PV+ESS mode is less beneficial considering the high investment cost of ESS. However, the benefit of PV+ESS mode is substantial with the decrease of ESS cost, which is a promising trend for future development of electric distribution system.

photovoltaic (PV) system, operation mode, economic analysis, benefit