HOMER Pro Software Research Articles

An Analysis of Renewable Energy Technology Integration Investments in Malaysia Using HOMER Pro

Renewable energy systems are technologies that can generate electricity from solar, wind, hydroelectric, biomass, and other renewable energy resources. This research project aims to find the best renewable energy technology combinations for several scenarios in Malaysia. The strategies are analysed by evaluating the investments in the renewable energy systems in each of the decided scenarios in Malaysia, Pekan, Pahang and Mersing, Johor, using HOMER Pro software. The finding shows that the PV–wind hybrid system has a better net present cost (NPC) than the other systems for both scenarios, which are USD −299,762.16 for Scenario 1 and USD −642,247.46 for Scenario 2. The PV–wind hybrid system has 4.86-year and 2.98-year payback periods in Scenarios 1 and 2. A combination of RE technologies yielded fewer emissions than one kind alone. The PV–wind hybrid system provides a quicker payback period, higher money savings, and reduced pollutants. The sensitivity results show that resource availability and capital cost impact NPC and system emissions. This finding reveals that integrated solar and wind technologies can improve the economic performance (e.g., NPC, payback period, present worth) and environmental performance (e.g., carbon dioxide emissions) of a renewable energy system.

Optimal Sizing of a Hybrid Renewable Energy System: A Socio-Techno-Economic-Environmental Perspective

Abstract Unprecedented power outages and load shedding significantly impact power supply reliability in a power distribution network. Furthermore, extending grid availability to far-flung regions with higher distribution losses is not economically viable. Therefore, a hybrid renewable energy system (HRES) is developed, and its socio-techno-economic-environmental (STEE) viability in supplying reliable electricity to the village is being examined in this paper. STEE factor-based multi-target optimization and sizing technique are designed using the homer pro software. The factors considered are namely social (land cost, human progress index, and employment generation factor), technical (unmet load, renewable energy portion, duty factor, and excess energy factor), economical (annualized cost of system, cost of energy, and total net present cost), and environmental (carbon emission and particulate matter). Three HRES setups are investigated, with various combinations of photovoltaic (PV), wind turbine (WT), battery (BAT), biogas generator (BG), and diesel generator (DG) and the optimal configuration is selected by STEE performance analysis. Compared to other evaluated setups, the HRES design with PV–WT–BAT–BG–DG is optimal for a consistent power supply. A sensitivity analysis for the optimal setup’s macro-economic variables and component costs is performed to achieve a more feasible optimal setup. Furthermore, the optimal setup’s cost of energy (0.1813 $/kW h) is lower than that of the most recent study in the literature. The closeness of the hybrid optimization of multiple electric renewables (HOMER) results (cost of energy (0.1813 $/kW h), unmet load (2.86 kW h/year)) and particle swarm optimization results (cost of energy (0.1799 $/kW h), unmet load (2.60 kW h/year)) for the optimal HRES setup supports the validity of the HOMER method used in this investigation.

Modelling and techno-economic analysis of standalone SPV/Wind hybrid renewable energy system with lead-acid battery technology for rural applications

The present work discusses an enhanced optimal solution for electrifying an individual rural consumer in a northern Indian village. The optimisation and sizing assessment is based on the techno-economic and socio-environmental parameters. The real-time market-based design variables have been considered for the present investigation. The renewable resources are assessed by the PDAV tool from NASA linked to the HOMER-Pro software tool. A stand-alone hybrid renewable energy system is designed for the domestic load of 55.14 kWh/day and 11.71 kW peak demand. The comparative analysis finds the stand-alone Solar Photovoltaic and Wind energy hybrid renewable energy system suitable. The net present and energy costs are determined as $34,344 and 0.152$/kWh for an optimized Hybrid System. In the present work, the employment creation with social aspects of the renewable energy system is analysed in a distinguished manner. A novel approach is adapted for the environmental effect of hybrid energy systems. The sensitivity analysis and robustness viability has been performed for the optimized arrangement. In the scope of optimal sizing, an equivalent model of the hybrid energy system is recreated in Matlab/Simulink. Each Matlab/Simulink model section is analysed separately with better technical aspects for the different input parameters.

Analyzing the Prospect of Hybrid Energy in the Cement Industry of Pakistan, Using HOMER Pro

Cement manufacturing is one of the most energy-intensive industries in the world. Most of the cost of producing cement is accounted for in terms of fuel consumption and power expenditure. Thermal power plants are a significant contributor to electricity generation in countries such as Pakistan. They are, however, inherently inefficient, and environmentally unfriendly. In this paper, the authors investigated the possibility of delivering hybrid energy to Pakistani cement plants. Five cement plants—Askari Cement Plant, Wah (ACPW); Bestway Cement Plant, Kalar Kahar (BCPKK); Bestway Cement Plant, Farooqia (BCPF); Bestway Cement Plant, Hattar (BCPH); and DG Cement Plant, Chakwal (DGCPC)—were selected. The possibility of implementing the four off-grid hybrid energy models (HEMs) was investigated for the intended cement plants, using HOMER Pro software. A multi-criteria decision analysis (MCDA) was carried out, based on objectives including the net present cost (NPC), the levelized cost of electricity (LCOE), and greenhouse gas (GHG) emissions. HEM-1 was comprised of PV, converter, and a fuel cell. HEM-2 had only a diesel generator, and acted as a base case in this study. HEM-3 had solar panels and a battery-converter system. In HEM-4, diesel generators, PV, and converters were considered. Based on the NPC, the optimal model was HEM-4, having a 0.249 USD/KWh LCOE in islanded systems. The NPC and operating costs were USD 540 M and USD 32.5 M per year, respectively, with a 29.80% reduction in the CO2 emissions compared to the base case. Based on the GHG emission, HEM-1 and HEM-3 were the best models, with 0% GHG emissions. The results confirmed that the proposed HEMs can sustainably provide electricity for 24 h a day to the sites under consideration, with minimum objectives.

Electric vehicles development in Sub-Saharan Africa: Performance assessment of standalone renewable energy systems for hydrogen refuelling and electricity charging stations (HRECS)

One of the main setbacks to electric vehicles (EVs) adoption relates to the unavailability of the required charging stations across a jurisdiction. In addition, drawing the required energy of the EVs from a fossil fuel-dominated grid does not only minimize the cleaner benefits of EVs but also puts enormous pressure on an already stressed grid network in electricity-deficient regions like Sub-Saharan Africa (SSA). Hence, in the current study, six different 100% hybrid renewable energy systems based on powerplants of solar, wind, and biomass have been proposed for meeting the energy needs of 70 and 30 battery and fuel cell electric vehicles, respectively using Ghana as a case study. With the aid of HOMER Pro software and multicriteria decision-making tools, the hybrid system, biogas generator-photovoltaic emerged as the most feasible of the six proposed solutions from a technical, economic, and environmental standpoint. This winning system produces 3.9 GWh/yr and 55.6 tonnes/yr of electricity and hydrogen, respectively. The NPC, LCOE, LCOH, and payback period was recorded as $6.53 million, $0.52/kWh, $9.09/kg and ∼8 years, respectively. Approximately, 4 tonnes of GHG emissions are produced by the HRECS each year, and the amount of CO2 emissions avoided from replacing 100 gasoline vehicles with the proposed EVs has been obtained as 460 tons/yr. With the aid of sensitivity analysis, it became apparent that the feasibility of the proposed systems could improve with improvement in components' efficiencies and lifetime, and reduction in unit costs. The current work has several contributions to the sustainable development goals (7, 8, 11, 13), and could aid in accelerating EV penetration in SSA.

A Design and Analysis of Artificial Vortex (ArVo) Based Stand-Alone Microgrid on Universities of Bangladesh

The administration of universities of Bangladesh faces financial drawbacks every year due to subsidies in the field of electrical power cost. The reason behind this is, students, consume more electric power than they pay for. To solve this problem a modern hydroelectric technology can be implemented. This new technology is called Artificial Vortex (ArVo). This method of power generation utilizes the natural tendency of whirlpool formation of fluids by defining a new flow path thereby causing a turbulent circular movement of fluid layers. Every day students and teachers use a huge volume of water. This water is excluded from the university premises by the wastewater paths. This wastewater flow can be utilized to generate electricity. In Artificial Vortex, a curved wall is designed in the water path to concentrate the water flow and generate rotational energy. This rotational energy is implemented on a vertical axis turbine. This turbine is rotated by the water flow impact and produce clean electricity through an alternator. The cost of electricity has been simulated by HOMER Pro software.

Performance analysis and socio-enviro-economic feasibility study of a new hybrid energy system-based decarbonization approach for coal mine sites

The mining sector contributes to 4–7 % of global GHG emissions, of which 1 % are from scope 1 and scope 2 emissions, caused by operations such as electricity consumption used for the mining process. China heavily relies on coal for power generation, and the energy demand for coal production in the country is primarily met by fossil-based electricity. In addition, the transportation of the mined coal to various destinations within the supply chain is achieved by fossil fuel-powered transport systems. These daily activities of the Chinese coal sector further compound foreign and domestic pressure on China to limit its carbon emissions. The current study attempts to provide a solution to the situation by investigating the feasibility of adopting renewable energy sources for the process of coal mining in Northern China. The selected coal mine is one out of 643 coal mines in Shanxi Province, with a combined production capacity of ∼1 billion tonnes of coal per annum. In addition, the excess electricity generated has been designated to produce hydrogen on-site as a refueling source for hydrogen fuelled-trucks to replace diesel fuelled-trucks in transporting coal. The analysis has been completed using HOMER Pro software, and the key contributions are summarized as follows. 4 different scenarios comprising of standalone solar photovoltaic, wind turbine, and diesel generator have been designed in the current study to serve a daily load of 215 MWh and 2.4 t of electricity for coal mining and hydrogen for transport of 100 % of the mined coal by road using hydrogen fuel cell trucks, respectively. A technical, economic, environmental, and social feasibility analysis have been investigated in the present work. A grid-tied system is subsequently added to the base scenario and the results are compared against the base system in an attempt to identify the more feasible option between the two systems. Also, a sensitivity analysis has been conducted to reveal the performance of the base system amidst future uncertainties. The findings in the current work could prove beneficial to China's quest to reach carbon peak by 2030 and achieve carbon neutrality by 2060.

A feasibility study on Balarbhita for advancing rural electrification with a solar—Micro-hydro hybrid system

The study analyzed the techno-economic feasibility of a village in the Indian state of Assam and designs a framework for a rural hybrid energy system. Through an extensive resource evaluation, techno-economic feasibility analysis and system size optimization are carried out using HOMER Pro software. Batteries are being used as a form of energy storage in the community power system, which is based on solar PV and micro-hydro as its principal energy sources. Macro-economic variables and resource variations have been considered in sensitivity analysis to ensure the robustness and commercial viability of the proposed hybrid energy systems. A reliable and economical design can provide 279861 kWh of electricity for the village at a modest cost of energy (COE) of $0.0953/kWh using 118 kW of solar power, 11 kW of hydropower, and 261 kWh of battery storage. Furthermore, solar energy systems account for about 62.5 percent, while micro-hydro turbines account for 37.5 percent. In addition, the suggested system does not pollute the local environment caused by carbon emissions. Most importantly, this hybrid energy system is capable of providing 24/7 continuous electricity to the site under consideration.

Sizing of a Hybrid Energy System for Al Mazyouna Area

Natural gas and diesel currently are the main fuel for electrical power generation in Oman. Decreasing the dependence on national gas and diesel is one of the main goals for Oman’s vision of 2040. This paper discusses the optimum design of a hybrid stand-alone power generation system for the power station of Al-Mazyouna located west of Dhofar governorate using HOMER Pro Software. Real load data and solar radiation of Al-Mazyouna were utilized in the modelling approach. Different scenarios of power systems were investigated, using mainly, diesel generators, PV solar panels, and storage batteries to reach an optimal solution. The main factors that were considered to decide the wining setup of a power system are the net present cost, cost of energy and the amount of emissions. The optimum scenario resulted in a net present cost of $84.8 M and a cost of energy of $0.161/kWh compared to a net present cost of $99.4M and a cost of energy of $0.188/kWh for the current system. Additionally, the optimum scenario system limits toxic emissions significantly compared to the base system. The results of the winning scenario showed that the emitted quantities of harmful gases are all reduced by about 28% compared to the base system.

Selection of the best dispatch strategy considering techno-economic and system stability analysis with optimal sizing

In this paper, optimized hybrid off-grid renewable energy systems (HRES) have been designed for two divisional locations in Dhaka and Khulna in Bangladesh. An analysis is conducted using five different load dispatch strategies to find the best dispatch strategy for a cost-effective and technically feasible Islanded hybrid microgrid that will support the growing power demand. A comparative analysis among the various dispatch strategies is also presented to find out the best and worst dispatch strategies for the proposed HRESs. The two HRESs consist of solar PV, a backup diesel generator, wind turbine, load demand of 23.31 kW, and a battery storage system. HOMER predictive strategy, Generator Order, Load Following, Combined Dispatch, and Cycle Charging dispatch strategy has been adopted for evaluation. The two HRESs are optimized for CO2 emission, Levelized Cost of Energy, and Net Present Cost minimization along with a feasible and stable voltage-frequency response on basis of the five dispatch techniques. The techno-economic analysis of the two HRESs is conducted using the HOMER Pro software platform. For the power system response analysis, MATLAB/Simulink is used. This study provides a complete guideline for determining the optimum component sizing ensuring optimum operation and possible costing estimation for the optimized performance of the two HRESs for different dispatch techniques. Also, a comparative study among the designed HRESs, other hybrid systems, and conventional power plants is conducted to prove the significance of this research work.

Comparative assessment of a stand-alone and a grid-connected hybrid system for a community water supply system: A case study of Nankese community in the eastern region of Ghana

Community water supply systems in Ghana are grid connected which is intermittent leading to breakdown of the systems and causing water shortages. In addition, high electricity tariffs have led these systems into huge debts. This research, therefore, aims to conduct comparative assessment of adopting a hybrid grid-connected and a stand-alone power system for these systems, using HOMER pro software. A daily average of 121.25 kWh was obtained from the chosen site as an input. Two scenarios were considered: a Grid-PV (Scenario 1) and a PV-Genset (Scenario 2) hybrid systems. The grid-connected (Grid-PV) was the best option with a LCOE of $0.0824/kWh while the standalone (PV-Genset) system was $0.309/kWh. Comparing them with $0.233/kWh for the Grid-only system, the Grid-PV system was about 184% cheaper while the PV-Genset system was about 24% more expensive. The PW of the scenarios yielded $58,422 and -$43,371, an IRR of 15.3% and 1.6% and a SPP of 6.21 and 24.13 years respectively. Although Scenario 1 was economically viable for investment, it yielded the highest GHG emission of 12,341.5kg/yr. Scenario 2, on the other hand, was not an economically viable option but yielded the least GHG emission of 4775.57kg/yr. Although this system was relatively expensive from the financial point of view, environmental considerations together with the grid tariff evolution in its life-cycle will make it cheaper.

Optimizing the performance of hybrid renewable energy systems to accelerate a sustainable energy transition in Nigeria: A case study of a rural healthcare centre in Kano

The COVID-19 pandemic brought tremendous pressure to the African continent's health sector, particularly in rural areas. Rural healthcare facilities experienced severe energy shortages due to the influx of Covid-19 patients, which strained their operating capacities. These facilities usually rely on diesel engines, and this unidirectional approach limited governments' vision in resolving the energy crisis. This paper aims to develop a hybrid energy system (HES) that combines alternate energy sources available at a rural healthcare centre in northern Nigeria and conduct a techno-economic analysis of the viability of such systems. The energy potential of available energy resources at the target location and comparison of various HES configurations were estimated with HOMER Pro software to determine the most feasible choices. These choices were analyzed for technical, financial, and environmental viability using RETScreen Expert. Due to an abundance of solar energy, low diesel cost, and sufficient wind energy potential, the results show PV – Diesel and Wind – Diesel system HES configurations as the only practical choices. Techno-economic analysis indicates that the PV – Diesel HES produces annual savings of $30,583 with a Net Present Value (NPV) of $390,949 compared to $15,174 and $193,980 for the Wind – Diesel configuration. Further analysis solidifies the PV-Diesel HES as the best choice with a payback period of 1.3 years, 75 tons of CO2 emission reduction, and annual savings of $30,583 compared to the initial diesel energy system.

Mathematical Model for Household Off-Grid Simulation (Off-Grid System Sizing)

Abstract The paper presents the results of the research, which was initiated in our previous publication. The main goal of the research is to develop and validate our own multi-objective simulation tool for determination of optimal mix and sizing of off-grid and grid-connected microgrid systems. The first version of the developed model was tailored specifically for simulation of household off-grid system, which consisted of solar photovoltaics (PV), micro wind turbine, electric batteries, and backup power generator. Proposed algorithms are based on simulation of mentioned resources and hourly electric loads of off-grid system with the objective to reduce unsupplied energy volumes and total system costs. Several alternatives were considered with different configurations of the off-grid system and dispatching strategies of available resources. The developed model was validated with calculations of real off-grid system and results were compared to those, which were made in the previous publication, using Homer Pro software.

Simulation of Hybrid On-grid and Off-grid System Using Homer Pro

Electricity is the most adaptable and easily controlled form of energy and can be easily obtained from renewable sources (inexhaustible). The demand for electricity in the world, including India is rising at an alarming rate because it assumes a very essential role in the economic growth of a nation. There are a large number of remote or rural areas in India where the reach of conventional sources of energy is either not practical or very difficult. This paper proposes a PV-biogas-Battery system to meet the energy needs of rural areas of Uttar Pradesh (U.P), where the grid is not accessible. The comparison of the On-grid PV-Biogas system, Off-grid PV-Biogas-battery system and On-grid PV system is done. Techno-economic analysis of the above systems is also done. It is found that in the present scenario the Off-grid PV-Biogas-Battery system gives the best results. Considering the future possibility that the villages get to the grid, On-grid PV system is also designed which gives the best result in this scenario. The modelling and simulation are done with HOMER Pro Software. Besides providing electricity to the village from a hybrid PV-Biogas-battery system, it is also prescribed to use the gases (like methane) produced in the bio gas plant to provide as cooking gas to households Biogas can also be upgraded into biomethane, which is known as renewable natural gas or RNG, and infuse into natural gas pipelines or used as a fuel in vehicle and to utilize the output waste produce in bio gas plant for manuring purpose. This manure can replace fertilizers eventually increasing yield without compromising the nutrient and composition of soil.

Optimized wind-light-storage configuration based on Homer pro

With the increasing shortage of energy and increasing demand for electricity, renewable energy microgrids have become the future trend of power grids. However, due to the strong uncertainty of its power generation, improving the stability of power system operation and reducing the cost of microgrid configuration have become important issues for the optimization of microgrid configuration. To address the above problems, this paper proposes a wind-light storage system, and establishes a model for optimal allocation of microgrid capacity with the minimum net present value of this system as the objective function. The relevant parameters are entered into Homer Pro software, which performs simulation calculations to obtain the configuration solution with the best economy and performance.

Design and evaluation of a distributed generation system based on renewable energies applied to a rural area of the state of Veracruz

This article aims to show the dimensioning and evaluation of a Distributed Generation system based on renewable energies for its application in a rural area in the state of Veracruz, Mexico. The main motivation of this work arises from the shortage of energy or a deficient supply in numerous localities located in the state of Veracruz, derived from different reasons. A methodology based on the application of HOMER Pro software is proposed for the sizing and optimization of a renewable hybrid system, considering it as an isolated set from the supply network, achieving the optimization and evaluation from technical and economic aspects. Initially, the meteorological data of the site were obtained, from its geographical coordinates; subsequently, the demand profile of one of the households in the community is determined to extrapolate it to the total number of dwellings. The results obtained in this research can serve as a basis for its implementation and, therefore, improve the conditions in which the population of rural communities or isolated from supply networks usually live.

Techno-Economic Feasibility of Off-Grid Renewable Energy Electrification Schemes: A Case Study of an Informal Settlement in Namibia

This paper examines different off-grid renewable energy-based electrification schemes for an informal settlement in Windhoek, Namibia. It presents a techno-economic comparison between the deployment of solar home systems to each residence and the supplying power from either a centralized roof-mounted or ground-mounted hybrid microgrid. The objective is to find a feasible energy system that satisfies technical and user constraints at a minimum levelized cost of energy (LCOE) and net present cost (NPC). Sensitivity analyses are performed on the ground-mounted microgrid to evaluate the impact of varying diesel fuel price, load demand, and solar photovoltaic module cost on system costs. HOMER Pro software is used for system sizing and optimization. The results show that a hybrid system comprising a solar photovoltaic, a diesel generator, and batteries offers the lowest NPC and LCOE for both electrification schemes. The LCOE for the smallest residential load of 1.7 kWh/day and the largest microgrid load of 5.5 MWh/day is USD 0.443/kWh and USD 0.380/kWh, respectively. Respective NPCs are USD 4738 and USD 90.8 million. A sensitivity analysis reveals that variation in the fuel price and load demand changes linearly with system costs and capacities. However, reducing the PV module price in an energy system that includes wind and diesel power sources does not offer significant benefits. Furthermore, deploying an energy system that relies on fossil fuels to each residence in an informal settlement is not environmentally responsible. Unintended negative environmental impacts may result from the mass and simultaneous use of diesel generators. Therefore, a microgrid is recommended for its ability to control the dispatch of diesel generation, and its scalability, reliability of supply, and property security. A roof-mounted microgrid can be considered for piloting due to its lower initial investment. The electricity tariff also needs to be subsidized to make it affordable to end-users. Equally, government and community involvement should be prioritized to achieve long-term economic sustainability of the microgrid.

Size optimization of a stand‐alone hybrid photovoltaic/wind/battery renewable energy system using a heuristic optimization algorithm

Today, it has become imperative to design these systems at optimum size to make reliable and minimize the total costs of renewable energy systems. There are many studies about size optimization in the literature. However, few studies have approached the problem with a heuristic method at different levels of reliability and compared the results with commercial software. This paper aims to fill this gap by proposing an artificial bee colony (ABC) algorithm with different reliability ratios for renewable energy systems size optimization and comparing the results of the proposed method with the results of the HOMER Pro software. The current methodology is validated with a real case study on the load demand of a school building (latitude 41.37, longitude 27.3) in Turkey. The peak and average load per day for the school building are 7.4 kW and 51.8 kW, respectively. The proposed method has presented 14.71%, 14.36%, and 6.23%, respectively, more economical solutions than HOMER Pro software for hybrid photovoltaic (PV)/wind/battery, PV/battery, and wind/battery renewable energy system scenarios. In addition, the ABC algorithms with different reliability ratios (%0, %0.2, %1, and %3) are used to analyze the effect on the system cost of the loss of power supply probability. According to the results, the hybrid renewable energy system consisting of 230 PV panels, 6 wind turbines, and 34 batteries is the most economical option with a total annual cost of $42 717.58 compared to stand-alone systems with a reliability %0 ratio. It has been seen that increasing the loss of power supply probability reduces system costs. Consequently, this study shows that using the ABC algorithm in size optimization of renewable energy systems yields accelerates the decision-making process and more optimized solutions.

Exploration on the feasibility of hybrid renewable energy generation in resource-based areas of China: Case study of a regeneration city

In order to explore the feasibility of hybrid renewable energy generation in resource-based areas in China, this paper takes a regeneration city as an example. The technical, economic, and environmental optimization design of the hybrid energy systems for the considered tiny village in Nanyang of Henan province are carried out using HOMER Pro software. The study demonstrates the multi-year and single-year modules of the HOMER Pro software with the advanced storage module. The load following (LF), cyclic charging (CC), and combined dispatch (CD) strategies are adopted in this study. The results indicate that the optimal photovoltaic (PV)-wind turbine (WT)-diesel generator (DG)-battery system under the CD strategy, consisting of 250 kW PV arrays, a WT, a 360 kW DG, 10 battery units, and a 150 kW converter, is the most economically viable with a total net present cost (NPC) of $1,795,558 and cost of energy of $0.378/kWh. The present worth is $5,827,278, which is the difference between the NPC of the DG system and the PV-WT-DG-battery hybrid system. From the perspective of economic and environmental, the PV-WT-battery system is the best among the studied systems. Moreover, the annual CO2 emissions of the optimal PV-WT-DG-battery system as a proposed system is 71,988 kg/year. The optimal PV-WT-DG-battery system reduces CO2 emissions by 89.4% per year compared with DG-only system. The amounts of CO2 emissions emitted from the PV-WT-DG-battery system increase with the number of years, while the renewable fraction values decrease with the number of years.

Feasibility evaluation of an off‐grid solar‐biomass system for remote area electrification considering various economic factors

AbstractOff‐grid renewable energy systems are a solution for power generation in areas where access to the grid is not possible or cost‐effective; in particular, low population rural areas located far away from grid lines or in rugged terrains. Furthermore, over‐reliance on fossil fuels for supplying global energy demand has led to the depletion of nonrenewable resources and environmental issues. This paper presents a feasibility assessment of an off‐grid hybrid renewable energy system for a remote rural area in Kohgiluye and Boyer‐Ahmad Province in Iran. Regarding the available energy resources in the region, a photovoltaic (PV)‐biomass energy system is considered. HOMER Pro software is utilized to find the optimized sizing of the PV‐biomass system to fulfill this load demand. The objective function in this optimization is the system's total net present cost. Due to the rapid fluctuation of economic factors in the country, several rates of inflation and discount rate are considered to investigate their influence on the costs of the system. The optimization result for the current inflation rate of 40% and the discount rate of 18% in the country proposes a hybrid energy system consisting of a 3 kW biogas‐fueled generator, 4.74 kW PV, 10 kWh battery, and 2.07 kW converter to meet the 2.64 kW peak load and 14.53 kWh/day consumption of the community. The total net present cost and cost of energy are $93,057 and 0.0933 $/kWh, respectively. Finally, the environmental assessment of the proposed hybrid system shows an annual CO2 emission of 2.95 kg, which means 99.9% CO2 emissions mitigation compared to a conventional coal‐based electrical plant.