A full analysis is shown in this paper for the cost of kWh generated from a photovoltaic station located in Kuwait. By using 21 years of weather data for Kuwait, the yearly generated energy was found by proposing the PV station capacity with known panel tilt angle. The cost of kWh generated from the PV station was compared with the kWh generated from conventional units in the country. A sensitivity analysis was done to some factors: capital cost per installed PV peak watt, discount rate, and operating peak hours, which affect the cost of kWh production from both PV and conventional units. If the PV station is proposed to be installed in Kuwait, the capital cost per PV installed peak watt must be less than today＇s prices.