Occam's Razor in Residential PV-Battery Systems: Theoretical Interpretation, Practical Implications, and Possible Improvements

Abstract

This paper presents a theoretical interpretation and explores possible improvements of a widely adopted rule-based control for residential solar photovoltaics (PV) paired with battery storage systems (BSS). The method is referred to as Occam's control in this paper, given its simplicity and as a tribute to the 14th-century William of Ockham. Using the self-consumption-maximization application, it is proven that Occam's control is a special case of a larger category of optimization methods called online convex learning. Thus, for the first time, a theoretical upper bound is derived for this control method. Furthermore, based on the theoretical insight, an alternative algorithm is devised on the same complexity level that outperforms Occam's. Practical data is used to evaluate the performance of these learning methods as compared to the classical rolling-horizon linear programming. Findings support online learning methods for residential applications given their low complexity and small computation, communication, and data footprint. Consequences include improved economics for residential PV-BSS systems and mitigation of distribution systems' operational challenges associated with high PV penetration.