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This paper presents comparison of an off-grid (7 kW) and grid-tied (5.5 W) solar PV system for electricity generation at the College of Science and Technology, Rinchending, Bhutan. Energy and economic performance of both the systems were compared using the HOMER optimization software. From the simulation, it was found that the estimated cost of generation is US$ 0.13/ kWh for off-grid system and US$ 0.08/kWh for grid-tied system. For both the systems the cost of generation is more than fourfatcat:n3fmzpflurhytm5f3t6kos54c4