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Abstract: This study evaluates technoeconomic and environment assessment of solar photovoltaic (PV) system in Parang Island, Indonesia. Up to 2014, electricity in Parang Island was generated from diesel generator. Supply for diesel fuel is prone to scarcity, especially when the supply from Java stopped during high waves. Installation solar PV for electricity improves energy access in Parang Island, as well as reducing carbon dioxide (CO₂) emission from fossilbased fuel. However, performance of the system should be evaluated by conducting assessment using sustainability indicators. The assessment analyzed technoeconomic and environment indicators, i.e. capacity factor, daily service operation, levelized cost of electricity (LCOE), payback period, internal rate of return (IRR), and carbon dioxide (CO₂) emission saving. The system shows good performance in technical and environment aspect with 25.76% capacity factor, 12 hours a day daily operation, and 4.81ton CO₂ emission savings annually. In economic assessment, it shows the LCOE is at USD 0.11 per kWh which is higher than retail electricity price (USD 0.09/kWh). With 20 years of lifetime, the system indicates unattractive investment with having minus IRR and failure to achieve payback. Sensitivity analysis is done to check the effect of assumption in the result. In this study, sensitivity analysis shows that energy production affect LCOE the most compare to capital cost, Operation and Maintenance Cost, Panel and Battery Size. This assessment only considered six indicators due to limited data available in field.

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