Economic Performance of Net-Zero Energy Community under Reward-Penalty Mechanism Considering PV System Reliability

Research output: Contribution to journalArticlepeer-review


  • Yuehong Lu
  • Zafar Khan
  • Hasan Gunduz
  • Wei Wang

External organisations

  • Department of Electronic, Electrical and Systems Engineering, University of Birmingham, UK
  • Electrical Power Engineering, Mirpur University of Science and Technology, Mirpur (A.K.), Pakistan
  • Modeling and Simulation of Structures, Bauhaus University Weimar, Weimar, Germany
  • Department of Civil Engineering and Architecture, Anhui University of Technology, Ma’anshan, 243002, China


Economic performance of net-zero energy building/community (ZEB/ZEC) is an
important factor that affects potential investors’ decision on installing renewable energy
systems (RES). A reward-penalty mechanism (RPM) is proposed for accelerating the
development of zero energy communities, which is developed without considering the
reliability effect from RES generation. However, an investigation is deserved for the
reliability effect of RES on building economic performance. A case study is therefore
conducted based on an assumed community consisting of 20 family houses, in which the
electricity load was collected by the smart meter for more than one year. The results show
that the proposed RPM works efficiently under an ideal condition, while the costs of the
community and its buildings are greatly increased when the effect of PV system reliability is
considered. Specifically, the total cost of the community under 1.0ZEC design is 5 005 USD/yr
in the first year, which increases to 11 341 USD/yr in the 25th year. By contrast, the total cost
of the community under 1.2ZEC design is 5 243 USD/yr in the first year and increases to 9 607 USD/yr in the 25th year. It is believed that the results of this study can provide a progressive perspective for scheme makers and building owners in terms of its economic benefit. Development of enhanced RPM by considering system reliability will be investigated in our future work.


Original languageEnglish
Pages (from-to)26-42
Number of pages17
JournalEnvironmental and Climate Technologies
Issue number3
Publication statusPublished - 1 Dec 2019


  • Economic performance, PV system, reliability, reward-penalty mechanism, net-zero energy building/community