Green hydrogen represents a sustainable energy solution capable of supporting the global shift away from fossil fuels. In Algeria, with its abundant solar resources, this potential is significant. However, challenges related to water resource management and the energy cost of production limit large-scale implementation. Addressing these issues is crucial for effectively harnessing Algeria's renewable energy potential. This study conducts an in-depth analysis leveraging advanced simulation tools like HOMER Pro to compare photovoltaic (PV) productivity and hydrogen yields in Algerian regions. The study identifies both desert regions and non-desert areas for their potential, employing innovative methods such as seawater electrolysis and wastewater utilization for sustainable water sourcing. The potential integration of hydrogen fuel cells into microgrids is also explored for enhanced energy stability and storage. The findings reveal that desert regions, such as Tamanrasset and Adrar, exhibit the highest photovoltaic electricity productivity, generating 33.5 GWh/year and 32.9 GWh/year, respectively. This translates into green hydrogen production capacities of 679 tons/year and 668 tons/year. Meanwhile, northern regions like Tlemcen and Skikda demonstrate substantial potential, producing 29 GWh/year and 26.6 GWh/year of solar electricity, which results in green hydrogen production outputs of 589 tons/year and 539 tons/year, respectively. This underscores Algeria's ability to leverage solar energy across diverse regions. The study highlights that while desert regions exhibit high solar and hydrogen production, northern areas provide a strategic advantage due to their proximity to European markets. Algeria's existing infrastructure supports efficient export to European markets, offering a strategic advantage in green hydrogen trade.