Purpose <p>Solar energy, especially through photovoltaic systems, is a widespread and eco-friendly renewable source. Integrating life cycle cost analysis (LCCA) optimizes economic, environmental, and performance aspects for a sustainable approach. Despite growing interest, literature lacks a comprehensive review on LCCA implementation in photovoltaic systems. The purpose of this review is to identify key factors influencing LCCA in photovoltaic systems and to propose a general framework for its sustainable implementation such as energy output, initial investment, maintenance costs, environmental impact, and financing schemes.</p> Methods <p>Methodology involves meticulous data extraction from databases, screening titles, abstracts, and full texts, along with keyword analysis, leading to a detailed review of 67 articles.</p> Results <p>This review explores LCCA’s significance in global photovoltaic system evaluation, encompassing performance, energy optimization, environmental impacts, and economic dimensions. Key findings show that LCCA is essential for improving economic viability and environmental sustainability. Additionally, the proposed framework incorporates performance assessment, cost–benefit analysis, energy optimization, and environmental sustainability.</p> Conclusions <p>This review highlights the critical role of LCCA in optimizing photovoltaic systems by addressing key economic, environmental, energy, and performance factors. By proposing a comprehensive framework, it offers practical insights for both researchers and practitioners to enhance the decision-making process, leading to more sustainable and cost-effective photovoltaic implementations. Future research should focus on refining LCCA models and integrating emerging technologies to further improve the accuracy and applicability of the analysis.</p>