Many developing countries face an energy demand to satisfy the daily needs of the people. Household biogas digesters are among the interesting solutions to meet the energy demands for cooking and lighting, and at the same time taking care of the kitchen wastes. In this study, a novel textile-based biogas digester was developed. The digester was evaluated for biogas production from a synthetic nutrient and an organic fraction of municipal solid waste (OFMSW) as substrates for more than a year. The obtained biogas productivity in both experiments was 570 L/kgVS/day, which indicates that the digester is as efficient in handling of OFMSW as the synthetic nutrients. Based on the obtained biogas production data, the techno-economic evaluation and sensitivity analysis for the process were performed, replacing LPG and kerosene consumption with biogas in households. A 2-m3 digester can supply the fuel needed for cooking for a family of 4–6 people. The sum of investment and 15-years operational costs of this digester was 656 USD, which can be compared with 1455 USD for subsidized-LPG and 975 USD for kerosene, respectively. The results from the sensitivity analysis show that it was a positive investment, unless the price of kerosene goes down to less than 0.18 USD/L.