Intermediate pyrolysis can be used to obtain high-quality biofuels from low-value residues such as sewage sludge or digestate. A major obstacle is the high water content of sludgy biomass, which requires an energy-intensive and expensive drying step before pyrolysis. Solar greenhouse drying is an efficient and sustainable alternative to a thermally heated belt dryer. In this study, a techno-economic assessment of intermediate pyrolysis with solar drying is carried out. Marketable products of the process are bio-oil, a substitute for diesel or heating oil, and bio-char with various possible applications. Chile is chosen as the setting of the study as its 4000 km long extension from north to south gives the opportunity to evaluate different locations and levels of solar irradiation. It is found that solar drying results in higher capital investment, but lower fuel costs. Depending on the location and solar irradiation, solar drying can reduce costs by 5–34% compared to belt drying. The break-even price of bio-char is estimated at 300–380 EUR/ton after accounting for the revenue from the liquid bio-oil