The hybrid optimization model for electric renewable (HOMER) software is used to determine the system size and its life cycle cost including the levelized cost of energy (LCOE) and net present cost (NPC) for each of these power generation models. The battery model for these two systems is 1.6 kWh daily load with 0.30 kW peak load for a single household and 193.05 kWh/day with 20.64 kW peak load for an off-grid PV microgrid. A performance comparison between a single household and a microgrid PV system is conducted by developing efficient and low-cost off-grid PV systems. In this paper, we develop a cost-effective power generation model for a solar PV system to power households in rural areas in Rwanda at a reduced cost. In order to provide affordable electricity to low-income households, the government of Rwanda has pledged to achieve 48% of its overal electrification goals from off-grid solar systems by 2024. The country’s current electrification rate is estimated to be 59.7%, and hydropower remains Rwanda’s primary source of energy (with over 43.8% of its total energy supplies) despite advances in solar technology. In particular, the development of photovoltaic (PV) microgrids, which can be standalone, off-grid connected or grid-connected, is seen as one of the most viable solutions that could help developing countries such as Rwanda to minimize problems related to energy shortage. In recent years, several factors such as environmental pollution, declining fossil fuel supplies, and product price volatility have led to most countries investing in renewable energy sources.

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