Grid-Tied Photovoltaic and Battery Storage Systems with Malaysian Electricity Tariff—A Review on Maximum Demand Shaving

Under the current energy sector framework of electricity tariff in Malaysia, commercial and industrial customers are required to pay the maximum demand (MD) charge apart from the net consumption charges every month. The maximum demand charge will contribute up to 20% of the electricity bill, and will hence result in commercial and industrial customers focussing on alternative energy supply to minimize the billing cost. This paper aims to review the technical assessment methods of a grid-connected solar photovoltaic (PV)—battery storage system—with respect to maximum demand shaving. An effective battery storage system can provide the extra energy needed during the peak energy consumption periods, as well as when renewable energy (RE) sources go offline. Based on the reviews, maximum demand shaving with good Return-of-Investment (ROI) can be achieved by considering the actual load profile, technical, and economic aspects of the solar PV-battery system and the Malaysian electricity tariff for commercial and industrial customers.