The Standing Offer Program (SOP) rate paid in BC to IPP’s is about 110 $/MWh. Therefore, a solar installation with a LCOE of 110 $/MWh calculated with 5% discount rate will have a return of about 5%.  LCOE depends on the installed cost and the energy produced by the system, itself function of the local solar irradiance and type of mounting (fixed or trackers). The graph shows what should be a maximum system cost to achieve a LCOE of $110 at various locations in BC with 2 mounting systems:

  • Dual-axis trackers (Top red dots) The most expensive  producing the most energy)
  • Fixed: (Bottom blue dots)  The less expensive with the lowest energy yield.

The LCOE formula uses the following parameters:

  • O/M: $20,000/MW/yr
  • CPI: 2%
  • Discount rate: 5%
  • Lifetime: 25 years
  •  All DC and AC performance losses included.
  • Overall efficiency POA to AC: 86%

See also our LCOE Calculator

EXAMPLE:  
To achieve a LCOE less than $110/MWh in Kamloops, a solar installation should not cost more than $2.3/Wp with trackers or $1.5/Wp with fixed mounting.