Abstract Cameroon is currently grappling with a significant energy crisis, which is adversely affecting its economy due to cost, reliability, and availability constraints within the power infrastructure. While electrochemical storage presents a potential remedy, its implementation faces hurdles like high costs and technical limitations. Conversely, generator-based systems, although a viable alternative, bring their own set of issues such as noise pollution and demanding maintenance requirements. This paper meticulously assesses a novel hybrid energy system specifically engineered to meet the diverse energy needs of Douala, Cameroon. By employing advanced simulation techniques, especially the Hybrid Optimization Model for Electric Renewable (HOMER) Pro program, the study carefully examines the intricacies of load demands across distinct consumer categories while accommodating varied pricing models. The paper offers a detailed analysis of the proposed grid-connected PV/Diesel/Generator system, aiming to gauge its performance, economic feasibility, and reliability in ensuring uninterrupted energy supply. Notably, the study unveils significant potential for cost reduction per kilowatt-hour, indicating promising updated rates of $0.07/kW, $0.08/kW, and $0.06/kW for low, medium, and high usage groups, respectively. Furthermore, the research underscores the importance of overcoming operational challenges and constraints such as temperature fluctuations, equipment costs, and regulatory compliance. It also acknowledges the impact of operational nuances like maintenance and grid integration on system efficiency. As the world progresses towards renewable energy adoption and hybrid systems, this investigation lays a strong foundation for future advancements in renewable energy integration and energy management strategies. It strives to create a sustainable energy ecosystem in Cameroon and beyond, where hybrid energy systems play a pivotal role in mitigating power deficiencies and supporting sustainable development.