The demand of electricity in rural India is increased two fold in the last decade and this demand has been met by the electricity grid extension so far. But the cost of extension of grid is very high and also depends upon land location, distance to be covered and more importantly size of the load. The recent researches show that adding the renewable energy resources to the system at the load centre makes the system less costly and environment friendly. The different configurations are compared and the selection of optimum configuration is based on the least value of cost of energy (COE) and net present cost (NPC) along with the highest value of renewable fraction (RF) and lowest harmful emissions (CO 2 ) using HOMER (Hybrid Optimization Model for Electric Renewables) software is presented. A village location, Kotali Charkan (32° 37' 0" North, 74° 50' 0" East) in Jammu and Kashmir state of India is chosen for the system under the study, the hydro, solar and wind resources are available almost throughout the year on the selected village location.