The electrolysis of renewable energy to produce hydrogen has become a strategy for supporting a decarbonized economy. However, it is typically not cost-effective compared to conventional carbon-emitting methods. Due to the predicted intermediate of low-and zero-marginal-cost renewable energy sources, the ability of electrolysis to connect with electricity pricing offers a novel way to cost reduction. Moreover, renewables, particularly photovoltaics, have a deflationary effect on the value of the grid when they are deployed. This study investigates solar electrolysis configurations employing photovoltaic cells to feed a proton exchange membrane water electrolyzer for hydrogen production. Using experimental meteorological data at 1-min precision, the system has been evaluated in Baghdad, the capital of Iraq. Positioned at the yearly optimum tilt angle for the selected site, the solar array is rated at 12 kWp. Temperature effects on solar module energy loss are taken into account. Several electrolyzers with capacities ranging from 2 to 14 kW in terms of hydrogen production were examined to determine the efficacy and efficiency of renewable sources. MATLAB was utilized for the simulation procedure, with a 2021–2035 project lifespan in mind. The results suggest that a variety of potentially cost-competitive options exist for systems with market configurations that closely approximate wholesale renewable hydrogen. At 4313 h of operation per year, the planned photovoltaic array generated 18,892 kWh of energy. The achieved hydrogen production cost ranges between $5.39/kg and $3.23/kg, with an ideal electrolyzer capacity of 8 kW matching a 12 kWp photovoltaic array capable of producing 450 kg/year of hydrogen at a cost of $3.23/kg.