•Reactive power costs for photovoltaic system and battery energy storage are proposed.•Providing reactive power locally is not always economically or technically beneficial.•Reactive power costs consideration is especially important in poorly distributed systems.•DERs are found to be competitive with switched capacitors for reactive power provision.•Inverter efficiency is the most crucial factor affecting DERs’ reactive power provision.
Applied Energy – Elsevier
Published: Jan 15, 2018
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