Distributed generation (DG) based on rooftop photovoltaic (PV) systems with battery storages is a promising alternative energy generation technology to reduce global greenhouse gas emissions. As regulatory tariff-based incentives are diminishing, innovative solutions are required to sustain this renewable energy generation. An optimization model is proposed to maximize the economic benefits for rooftop PV-battery DG in a peer-to-peer (P2P) e. Distributed generation (DG) based on rooftop photovoltaic (PV) systems with battery storages is a promising alternative energy generation technology to reduce global greenhouse gas emissions. As regulatory tariff-based incentives are diminishing, innovative solutions are required to sustain this renewable energy generation. An optimization model is proposed to maximize the economic benefits for rooftop PV-battery DG in a peer-to-peer (P2P) energy trading environment. The goal of the proposed model is to investigate the feasibility of such renewable source participated P2P energy trading by examining the economic benefits. The model is illustrated in a simulation framework for a local community with 500 households under real-world constraints encompassing PV systems, battery storage, customer demand profiles and market signals including the retail price, feed-in tariff and P2P energy trading mechanism. Interactions among peer-to-peer trading stakeholders are examined, quantifying household savings for different scenarios of this P2P-based DG. Household energy savings are identified to be sensitive to many factors including the scale of PV systems, the PV penetration, the P2P trading margins, the presence of battery storage and energy trading time. The model shows that maximal savings up to 28% can be achieved by households equipped with larger PV systems and battery storages during weekdays from an exemplified case. The sensitivity analysis demonstrates tha. ••Optimization model developed for PV–battery systems in P2P energy trading market.••P2P energy trading implements real-world constraints and market signals.••Analysis shows household energy savings sensitive to multiple parameters.••Maximal savings up to 28% achieved when equipped with large PV-battery on weekdays.••Battery. Peer-to-peer energy tradingRenewable energyOptimizationBattery storageThe global energy market is undergoing drastic changes with an increasing consumer appetite for renewable resources and battery storage to reduce greenhouse gas emissions. Australia is a world leader in the penetration of household solar photovoltaic (PV) panels with 15% of its households (around 1.4 million) having roof-mounted PV in 2015, capturing 4.5 GW of solar peak capacity. Morgan Stanley estimates the Australian market for household battery storage to hit one million by 2020. Rooftop PV generation is projected to increase more than sixfold by 2050 in Australia. However, the demand side participation of renewable generation in Australia (i.e., with solar PV) is heavily subsidized by governments leaving it an uneconomical alternative to traditional fossil fuel-based generation. As tariff-based incentives are now diminishing, it is imperative to develop innovative solutions to sustain installation of renewable energy generation. A recent techno-economic analysis shows that the viability of residential renewable energy generation systems (more specifically, PV-battery systems) is significantly dependent on regulatory subsidies and cost reductions. This analysis also highlights the need to develop intelligent control strategies to optimize the flow of energy under realistic system parameters. Developing optimization models for rooftop PV-battery distributed generation and investigating new market frameworks, such as peer-to-peer (P2P) energy trading market to maximize benefits are reason. Fig. 1 shows the conceptual model of the P2P energy trading market considered in this study. Under this setting, the distributed consumers can save their energy cost by participating in P2P trading, which results in an energy value payment by the distributed consumer to the distributed generator via an aggregator. Similar to Roy et al., the two “peers” could share the “local use of network service” charge (LuOS) based on the network infrastructure required for the trade to encourage both buyers and sellers to participate in local trading. All consumers can be classified into four categories: (a) without a solar PV system and energy storage, (b) only have a PV system, (c) only have energy storage, (d) with both a solar PV system and an energy storage. In this setting, the consumers can either import energy from the retailer in a business-as-usual (BAU) manner or the P2P market. Similarly, their surplus energy can be exported to either the retailer or P2P market.In this study, we develop an optimization model for P2P energy trading with a pricing mechanism and distributed energy technologies. The objective function is to minimize the total energy cost by finding the optimal trading decisions and operational decisions related to the solar PV systems and the energy storage for each household in a local community. The rest of this section will describe the proposed mixed integer linear programming (MILP) model for P2P energy.