The　ever　increasing　rate　of　energy　consumption,　limited　fossil　fuels　and　pollution　have　made　the　expansion　of　renewable　resources　essential.　Due　to　the　suitable　solar　potential　available　in　Iran,　the　use　of　solar　energy　has　been　developed　more　than　other　renewable　resources.　In　this　paper,　photovoltaic　(PV)　panels　are　hybridized　with　battery　banks　and　the　power　grid　to　provide　electricity　for　100　residential　units　and　by　performing　a　techno-economic-environmental　analysis　on　the　use　of　different　solar　tracking　systems　PV　power　generation　is　maximized.　The　final　aim　of　this　paper　is　to　find　the　optimum　scenario　for　reaching　the　highest　efficiency　along　with　emissions　that　are　within　the　standard　range.　Also,　the　effect　of　grid　sell　back　on　the　results　is　estimated　and　a　sensitivity　analysis　is　performed　to　generalize　the　results　for　other　economic　and　climate　conditions.　Results　show　that　the　use　of　the　solar　tracking　system　significantly　reduces　the　number　of　needed　panels,　but　this　size　reduction　is　not　always　cost-effective　due　to　the　high　cost　of　tracking　units.　The　vertical　tracking　system　indicated　the　best　cost-efficiency　with　0.241　$/kWh　cost　of　energy　and　an　average　of　23%　improvement　on　the　output　power.　Although　the　dual-axis　tracker　improved　power　production　by　32%,　it　was　less　cost-efficient.　Sensitivity　analysis　indicated　that　with　33%　renewable　fraction　and　slightly　different　initial　costs,　the　optimum　cost　of　energy　will　vary　from　0.227　to　0.255　$/kWh.　©　2020　Elsevier　Ltd