Thermal energy in the industrial sector for process heating applications in the range of 50 to 250°C consumes about 35% of the global fossil fuel. Cascaded solar thermal systems are promising solutions to meet clean and uninterrupted thermal energy supply for industrial process heating. Well‐engineered cascaded arrangement of solar thermal collector (STC) and photovoltaic thermal (PVT) collector can attain an average solar fraction of more than 50%. In the present research, a solar‐assisted process heating system, wherein a STC integrated in series with PVT, has been designed to produce low‐ to medium‐temperature heat at higher solar fractions. Herein, thermal performance and economic viability of this novel system have been investigated and analyzed methodically. In the present research, a comprehensive TRNSYS simulation model is developed and validated experimentally. Results show that PVT integrated with heat pipe evacuated tube collector (PVT‐HPETC) and PVT integrated with flat plate collector (PVT‐FPC) system can generate thermal energy as high as 1625 and 1420 W with a thermal efficiency of 81 and 77% and exergy efficiency of 13.22 and 12.72%. Levelized cost of heat (LCOH) for PVT‐HPETC at process heat temperatures of 60, 70, and 80°C is 0.214, 0.208, and 0.201 MYR/kWh, respectively. It is worth to note that LCOH is less than the existing cost of heat generation which proves that these systems are economically feasible.