Abstract The entire world is facing severe energy crises. Gas, coal, biomass, oil, hydropower, wind, and solar power are the essential bases of energy for local and industrialized use. In the current work, four energy sources are synchronized in parallel to fulfil the energy demands: biogas (BG), the grid-tie solar system (GTSS), the water and power development authority (WAPDA) and diesel generators (DGs). This article describes a cost and energy analysis of the GTSS with two other energy resources and finds that the output of the GTSS is more efficient. At present, 406-kW solar panels are connected at the University of Lahore, Pakistan; this system consists of 19 on-grid inverters, each of which has a power capacity of 20 kVA, but this system is not working efficiently. Many solar systems in Pakistan also fail to produce the required output power, and Pakistan is currently facing a severe energy shortage. To overcome the energy shortfall, the results show that Pakistan should upgrade its energy system through solar thermal units. In this article, we compare the GTSS with two other energy sources and find that the GTSS is more economical and environmentally friendly. The billing cost comparison shows that solar energy has a lower unit cost than other energy resources and is a renewable source of energy with many advantages. If the installed GTSS continues to produce 60% of its total power, assuming 7 working hours per day, then the system will be able to return its capital cost in 6.9 years and save a total of $1,020,819.83. Our results are discussed considering the quality of the product, the required standard manpower for installation, the geographical location of the system and other parameters that affect the solar energy output.