Evaluating the Costs of Integrated Solar Hydrogen Systems: Exploring the Effect of Scale, Intermittency, and Energy Storage

Abstract

The transition to a sustainable energy system is crucial to meet climate targets and reduce fossil fuel dependence. Solar hydrogen systems offer a promising route for renewable hydrogen production. This study presents a techno-economic assessment of hydrogen production using integrated solar hydrogen panels combined with balance-of-plant equipment such as compressors. The analysis combines detailed Aspen Plus process design with an hourly solar model to capture the impact of system scale and hydrogen storage under intermittent operation. Results show that large-scale integrated systems can achieve costs comparable to photovoltaic-electrolyzer setups, suggesting a feasible and streamlined alternative. System scale is the dominant factor influencing the levelized cost of hydrogen (LCOH). At a small scale (1000 panels), the LCOH is about 49 <euro>/kg. Including hydrogen storage reduces costs by up to 40% through better utilization of capital-intensive components. At larger scales, costs decrease substantially: 100,000 panels yield an LCOH of 9.1 <euro>/kg, and 10 million panels reach 7.3 <euro>/kg. In these large systems, storage slightly increases costs because added capital expenditures outweigh operational gains. If solar-to-hydrogen efficiency improves to 23% and panel costs drop to 120 <euro>/m2, hydrogen could be produced at around 3.8 <euro>/kg. These findings emphasize the importance of scale, efficiency gains, and cost reduction to enable affordable renewable hydrogen directly from sunlight and water.