Finding economical and sustainable pathways for the deployment of renewables is critical for the success of decarbonizing energy systems. Because of the variable nature of renewable energy, however, the integration of renewables becomes increasingly costly and difficult as the renewable penetration becomes higher. The recent rise of electric vehicles (EVs) provides us with an opportunity to increase self-consumption of solar photovoltaic (PV) at households with substantially lower additional costs. In this paper, an environmental techno-economic assessment of residential PV systems is conducted with battery or EVs allowing charging and discharging (Vehicle to Home: V2H) in Kyoto, Japan, and Shenzhen, China, incorporating the cost projections of these technologies towards 2030. It is found that “PV + EV” (V2H) becomes highly cost-effective towards 2030 in Kyoto in comparison with “PV only”, “PV + battery”, and “EV charge”. In the region of lower electricity costs such as Shenzhen, switching to EVs from gasoline vehicles is the most cost-effective option during 2020s. Finally, it is found that “PV + EV” has the highest CO2 emission reduction potential across all the technology combinations considered, owing to EV charging of carbon-free electricity from PV. To facilitate a rapid household decarbonization, policy makers should reinforce policies to enhance the penetration of combined technologies of “PV + EV” (V2H) towards 2030.
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