<p>Hybrid photovoltaic and concentrated solar power plants present a promising approach to reducing the intermittency and volatility of renewable energy generation and mitigating the impact on the power grid. Although the techno-economic and environmental aspects of hybrid plants have been studied separately, a comprehensive evaluation from both economic and environmental perspectives remains unexplored. Hence, this study employs life cycle assessment and cost–benefit analysis methods to evaluate the environmental impact and economic performance of hybrid plants in Lhasa, China, considering the indirect economic benefits of environmental externalities. The results reveal the following: hybrid plants impose a much lower environmental burden with a global warming potential of 44.88&#xa0;kg CO₂ eq/MWh compared with centralized and distributed photovoltaic (PV) systems. For every 1&#xa0;MWh of electricity generated, hybrid plants consume 653.46&#xa0;MJ of primary energy. The generated environmental burden during the manufacturing phase is the greatest, with PV modules contributing the most to this phase. Attention should be paid to highly sensitive materials. Regardless of whether indirect economic benefits are considered, investing in these hybrid plants is not cost-effective. With a government subsidy of $65/MWh, the development of hybrid plants is beneficial. Therefore, in the short term, government subsidies have become an effective measure to promote the development of hybrid plants. In the long term, reducing costs and improving technology are key drivers to address the issues of cost-effectiveness. This study provides a research framework for evaluating the performance of hybrid plants in other developing countries.</p>