  Distributed solar photovoltaic (PV) systems are projected to be a key
contributor to future energy landscape, but are often poorly represented in
energy models due to their distributed nature. They have higher costs compared
to utility PV, but offer additional advantages, e.g., in terms of social
acceptance. Here, we model the European power network with a high spatial
resolution of 181 nodes and a 2-hourly temporal resolution. We use a simplified
model of distribution and transmission networks that allows the representation
of power distribution losses and differentiates between utility and distributed
generation and storage. Three scenarios, including a sector-coupled scenario
with heating, transport, and industry are investigated. The results show that
incorporating distributed solar PV leads to total system cost reduction in all
scenarios (1.4% for power sector, 1.9-3.7% for sector-coupled). The achieved
cost reductions primarily stem from demand peak reduction and lower
distribution capacity requirements because of self-consumption from distributed
solar. This also enhances self-sufficiency for countries. The role of
distributed PV is noteworthy in the sector-coupled scenario and is helped by
other distributed technologies including heat pumps and electric vehicle
batteries.
