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In this study, an integrated hybrid polygeneration system based on solar and biogas energy is developed for simultaneous heat and power generation and hydrogen production. A heat recovery system is employed, which can recover the waste heat from the flue gas for effective utilisation in the steam network. The devised system, comprising solar, biogas, chemical, steam, and power islands, is investigated and comparatively evaluated through energy and exergy approaches. Additionally, an optimisation study is carried out to find the optimal exergy efficiency. The findings suggest that integrating the steam island and hybrid system improved the overall system performance significantly. The optimisation results demonstrate the value of 58.06% for exergy efficiency, while energy efficiency is also increased from 60.55% to 65.94%.