AbstractFor photovoltaic (PV) technology to play an increasing role in the utility sector at its present price, the technology needs to be developed in a manner that is consistent with, and takes advantage of, the economics of the demand‐side management (DSM) market. High‐value applications in this direction are for photovoltaics to perform a DSM function either as a direct load control (DLC) device or as a peak‐shaving option, which has the effect of raising the end‐use efficiency of customers' electrical equipment. This paper describes two PV‐DSM applications involving a water heater and an air conditioner studied at a residential PV test facility, Solar One House, located on the campus of the University of Delaware. A single 55‐W PV module directly connected to an electric water heater was found to offset standby and mixing losses, resulting in a 2°C increase in water temperature at the end of the afternoon compared to the standard DLC (grid‐disconnected) case. A conservatively sized PV array without storage could meet the house air‐conditioning load over 97% of the time from noon to 3 p.m., but only 69% from 3 p.m. to 6 p.m. If a PV system is combined with an air‐conditioning cycling program, success rates for supply of an air‐conditioning load are greatly increased, meeting almost 100% of the load between noon and 3 p.m. and 85% during 3 p.m. to 6 p.m. Furthermore, our results suggest that a modest‐size PV array with storage could significantly shave peak air‐conditioning loads during 3 p.m. to 6 p.m., thus reducing the peak demand faced by a utility. Preliminary analyses support the economic compatibility of a PV system as a DLC devic
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