Electricity generation from photovoltaic (PV) in Latvia is currently below the necessary capacity required to contribute to achieving climate neutrality by 2050. However, photovoltaic offer households and companies the opportunity to align their electricity consumption with environmental goals while supporting the European Green Deal objectives. In recent years, there was a growing interest in the installation of photovoltaic microgenerators in Latvia. By June 2023, the total number of households microgenerators connected to the grid has reached 15,000, boasting a collective production capacity exceeding 120 MW. This significant increase is in stark contrast to the situation 5 years ago when Latvia had a mere 3 MW of photovoltaic capacity. Several factors contributed to this growth, including a surge in electricity prices, at times surging more than tenfold, and the implementation of renewable energy (RE) use support measures to facilitate the acquisition of RE systems. Furthermore, 2023 witnessed numerous amendments to Latvia’s energy policy documents and the introduction of the concept of citizen energy communities (CEC), indicating a growing emphasis on harnessing solar energy potential in the country. However, it remains crucial to base these endeavors on accurate, economically viable information regarding solar technologies, their costs and their anticipated long-term outcomes. This manuscript aims to provide an overview of the grid-connected potential of rooftop photovoltaic systems within a Latvian urban setting. Through extensive research, a model has been developed, employing a thoroughly tested simulation program for evaluating the generation capacity of photovoltaic systems. This model considers real electricity consumption data, the existing infrastructure and economic factors. The findings affirm the technical and economic viability of urban rooftop photovoltaic systems within the Latvian context. It has been established that the implementation of such citizen energy communities energy systems holds significant potential. These systems have the potential to be a promising solution for future electricity generation, addressing some of the demands while relieving strain on external power grids. However, the full potential can only be realized with improved infrastructure, and the system’s profitability is heavily contingent on market dynamics and political conditions. This study may also be applicable to other photovoltaic systems facing similar climate conditions.