Techno-economic assessment of grid-tied photovoltaic systems in interior British Columbia

Abstract

Photovoltaics (PV) are crucial for global decarbonization, but their economic viability is limited in regions heavily reliant on low-cost hydroelectric power. This study aims to address this paradox by conducting a techno-economic analysis of a 153.30 kWp rooftop PV system in British Columbia, Canada. By combining empirical performance data with validated simulations, we demonstrate that rooftop PV can achieve grid parity, even in a hydro-dominated, low-tariff environment. Leveraging Canada's 30% Investment Tax Credit (ITC) and achieving a 99% self-consumption rate, which minimizes grid exports under strict net-metering constraints, the system achieves an unsubsidized Levelized Cost of Electricity (LCOE) of 9.25 ¢ per kWh. With ITC, LCOE improves to 6.60 ¢ per kWh, compared to local commercial rates of 8.83 ¢ per kWh. Empirical validation of PVSyst and PVSol software outputs (within 2% deviation from measured data) addresses a critical gap in PV performance predictability. The system offsets 17% of onsite demand, while ITC reduces the payback period from 20.9 to 15.6 years. These results challenge the notion that hydro-rich regions must solely rely on legacy renewables and provide a replicable model for high-self-consumption PV deployment in similar markets, such as parts in Scandinavia, Quebec and the Pacific Northwest. Policy recommendations emphasize tailoring fiscal incentives to local tariff conditions, while technical insights highlight the importance of aligning PV generation with onsite demand to maximize economic returns.