| Summary: | Abstract Many efforts have been made to increase the utilization of renewable energy resources (RESs) in Iran. This paper aimed to evaluate the techno‐economic performance of an introduced hybrid microgrid (HMG) in eight climate zones of Iran. Therefore, ten cities are selected from the eight climate conditions of Iran. An electricity pricing strategy is also implemented according to the electricity tariffs defined by the Ministry of Energy (MOE) of Iran. The proposed electricity pricing strategy is applied to the HOMER software for investigating the optimal system configuration, RES electricity generation, and the economics of each understudy city. Optimization results indicate that Urmia (in moderate and rainy climate zone) has the least net present cost (NPC) (−5839$) and levelized cost of energy (COE) (−0.0122 $/kWh), whereas Golestan (in semimoderate and rainy climate zone) has the highest NPC (4520 $) and COE (0.012 $/kWh). It is shown that the combination of photovoltaic (PV)/wind turbine (WT)/converter in the grid‐connected operation mode is the most economical configuration. Moreover, the cities with higher potentials of wind speed and solar irradiance have lower NPC and COE. It is concluded that the utilization of the battery energy storage (BES) is technically and economically infeasible for all eight climate zones, even if the stored electricity is sold to the grid. Two sensitivity analyses are conducted to the electricity feed‐in‐tariff (FiT) and solar module price, respectively. The first sensitivity analysis indicates that by increasing FiT, more contribution of RESs is seen, which leads to lower COE and NPC. Furthermore, the two cities of Urmia and Yazd have the highest NPC and COE reductions. The second sensitivity analysis studies the module price impacts on the NPC and COE of each understudy city. It is revealed that the PV module price has a considerable effect on NPC and COE. However, this effect is more significant in some cities such as Bam, where a linear relationship is seen between the module price and economic results (NPC and COE).
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