The worldwide energy demand emphasizes a strong step towards alternative energy sources like solar to meet our present and future demand towards a cleaner environment. Stand-alone systems are now being replaced with a hybrid system that combines solar energy with conventional energy systems to satisfy the load demand. The present work focuses on estimating the load demand of residential, schools, commercial, and health centers of rural areas. In order to estimate the electrical load requirement of the rural area a hybrid system is based on the conceptualization of a hybrid solar diesel power system (HSDPS). Optimization and feasibility of the HSDPS system is performed by using HOMER. It is a microgrid optimization, simulation, and sensitivity analysis tool for optimizing the hybrid power system and it estimates the daily load profile as per requirement. The designed hybrid power system (HPS) is compared and validated with HOMER software to assess solar intensity on an hourly basis for hybrid renewable electric generation systems and the design of PV systems. The proposed work can be implemented to increase the efficiency of the system with the utilization of renewable energy with significantly fewer operating costs.