In this study, a techno-economic analysis for a 3.75 kW biomass gasification power generation system (BMPGS) was conducted by exploiting available biomass resources such as rice husk, coconut shell, and rubber shell as feedstock. Payback time (PBT), net present value (NPV), and life cycle cost are the economic criteria that are delivered by an economic model for a BMPGS. Experimental results obtained on the technical parameters of a BMPGS, show that the rubber shell operated BMPGS has the highest overall efficiency (15.5%), maximum diesel savings (48%), and least biomass consumption (3.3 kg/h). Even though the capital cost of the producer gas driven dual fuel CI engine is higher than the standalone diesel genset power production system, it has the lowest running cost and cost savings per year, making it an excellent choice for power generation in remote locations. The rubber shell operated BMPGS system show a minimum PBT of 2.9 years which is desirable as the cost for installation of the proposed system can be regained within a short period of time. A positive NPV of Rs. 3,90,000 is attained for rubber shell, which clearly indicates in acceptance of rubber shell as biomass feedstock for BMPGS. The sensitivity analysis proves that the uncertainty in input parameters such as the cost of a biomass gasifier, dual fuel VCR engine, labor cost, and the cost of biomass feedstock influence the output parameters of the capital cost, operating cost, and PBT.