ABSTRACT The growing energy demand in commercial buildings and businesses poses significant environmental challenges due to the dependence on fossil fuel-based energy. To address this issue, increasing the use of renewable energy sources and decreasing reliance on fossil fuels is crucial. Commercial buildings, in particular, have many opportunities to harness energy from renewable resources, such as solar, wind, and biomass. This study analyzed historical energy consumption data from a commercial building using MATLAB to forecast future energy demands. A range of machine learning algorithms were employed to accurately predict energy consumption, including Ensemble Boosting, Ensemble Bagging, Decision Trees, Support Vector Machines (SVM), and Neural Networks (NN). A Hybrid Renewable Energy (HRE) system was designed to meet the building’s energy needs, integrating renewable sources with grid-interactive inverters. Performance metrics for the forecasting models were calculated and documented, followed by a detailed techno-economic and environmental feasibility analysis of the HRE system. Different levels of renewable energy penetration were explored to optimize HRE designs using load-following dispatch algorithms tailored to the commercial building’s specific needs. The study revealed that achieving a renewable energy proportion of 12.6% resulted in the lowest cost of electricity (COE) at $0.135 and a Net Present Cost (NPC) of $8.84 million. Additionally, a reliability study using load flow techniques confirmed the stability of the optimized Hybrid Renewable Energy system. The energy costs for varying levels of renewable penetration, ranging from 10% to 40% is also explored in this research. In summary, transitioning to renewable energy sources in commercial buildings can reduce environmental impact while ensuring a sustainable energy supply.