Energy consumption rates have been rising globally at an escalating pace since the last three decades. The exploration of new renewable and clean sources of energy globally is thus gaining prime importance. In Australia, coal is still the primary source of energy, which, during the process of energy production, generates greenhouse gases, subsequently resulting in environmental degradation. Within this context, the paper compares the economic and environmental benefits of utilizing two renewable energy production sources: algae building technology (ABT) and solar PV panels. A case study site for retrofitting a specified area on the front façade of a multi-storied building at the University of Technology Sydney, City Campus, Australia was thus chosen for the study. A cost and benefit analysis model using the following performance indicators; return on investment, payback period as well as net present value of the two systems, was thus initiated. Annual revenue generation of both systems which included tangible and intangible benefits of both systems were simultaneously calculated. The investment and operation and maintenance costs of both systems were calculated based on market research as well as quantitative data adapted from our literature review. Our conclusions show that closed tubular photobioreactor systems have more benefit than solar panel system from an environmental impact perspective considering Australia’s current struggle with water scarcity, drought, air pollution and carbon emission reduction goals.