Background: The integration of distributed renewable energy sources into the conventional
power system network has created opportunities for electricity customers to reduce their electricity cost.
This paper investigates the optimal power scheduling of a hybrid energy system connected to the grid in
the presence of demand response strategy and inconvenience cost.
Methods: A new proposed method of calculating the inconvenience cost which is dependent on total
home appliance load, Customer Interruption Cost (CIC) and delay time operation of home appliances is
proposed. The hybrid energy system consists of solar photovoltaic (PV) module and battery bank
storage system. The home appliance scheduling is formulated as a non-convex mixed integer
programming with a binary decision variable to switch ON/OFF the home appliances. The optimization
objective is to minimize both the total daily electricity cost and inconvenience cost of a residential
customer with different time-shiftable, power shiftable home appliances and customer time preference
Results: The results show that it is important to schedule home appliances and include their
inconvenience cost so that home appliances are not only shifted to the lower electricity tariff periods but
can also start at their customer preferred operation times.
Conclusion: The results also show that the hybrid energy system is able to cater for all the energy
requirements of home appliances during the day, reducing power demand from the grid by a significant
percentage and thus, relieve the power system network and afford electricity consumers significant