Reliability assessment index is one of the main performance indicator for analyzing the impact of distributed energy generation system in the utility distribution system and minimize the costs associated with energy interruptions. In this study, sustainable energy development by using integrated photovoltaic distributed generation (DG) system considering reliability assessment indices and levelized cost of energy are presented. Electrical transient and analysis program simulation software are used for evaluation and assessment of the reliability indices based on the failure rate, average annual power interruption/outage time and repair time. The analytical method are used to evaluate the expected interruption cost (ECOST) of the system. HelioScope software is a photovoltaic simulation tool are used to design and calculate the energy generation (kWh) as well as global horizontal irradiation (kWh/m2) of the photovoltaic system. Experimental test system is a radial distribution network consisting of an 11.0 kV feeder emanating from 132.0 kV distribution grid station Satiana. According to the reliability evaluation and assessment of experimental test system before integration of photovoltaic distributed energy generation, the average service availability index (ASAI) is 0.9648 per unit. Then, the expected energy not supplied (EENS) is 772.0308 MWh per year and ECOST is 386,652,468.18 PKR per year. After integration of Photovoltaic DG, ASAI is 0.9741 per unit, then the EENS is 563.8584 MWh per year and integration ECOST is 227,087,143.39 PKR per year. The results showed that integrated PV DG system improve the reliability of conventional energy distribution systems.