This thesis investigates the potential of solar energy usage in Iraq for electricity generation and explains the environmental risks of using fossil fuels. The study focuses on using solar panels to compensate for the actual deficit in the electricity sector in Iraq. The government building, which located in west of Baghdad, Iraq will be taken as a case study. The choice of this building was due to the availability of accurate information about the electricity of the building and as it provides suitable space for installing solar panels. In this thesis, it was proposed to establish a solar system that is not linked to the government electricity grid (off-grid), as an alternative option for the current system (generators and government electricity), which consumes annually large amounts of money and diesel. This study shows that the proposed solar system is a good solution, both economically and environmentally. Economically, through financial analysis, the proposed system will save $ 1,053,150 in 40 years, and the net present value for the current system is higher than the net present value of the proposed system (PV system) by $ 289,828. Furthermore, the simulation program shows that the proposed solar system can meet the needs of the building of electricity, but the building needs to be operated eight hours daily on the government electricity grid. Environmentally, the proposed system will prevent 15,603.2 tons of CO2 over its life time period of 40 years. Keywords: Solar Energy, Renewable Energy, PV System, Energy Management, Simulation, Economic Evaluation, Solar Panel.