Man, all over the world, has required energy ever since his creation. Renewable energy technologies can play an important role in meeting the ultimate goal of providing the enenergy needs of man by replacing fossil fuels to generate inexhaustible, clean and safe energy. Biogas energy has been evaluated to augment traditional energy sources in Mbarara District, Uganda. Its development however, remains rudimentary, partly because of the lack of information regarding its economic viability. Based on primary and secondary data and the use of three economic decision criteria, namely; payback period, net present value and Internal rate of return, this study assessed the economic viability of biogas energy production. The model designed from the study shows that with empirical results, biogas energy production was economically viable. Therefore, large scale investiments in biogas energy can reap high since its production is economically viable.