Improving the performance of distribution systems is one of the main objectives of power system operators. This can be done in several ways, such as network reconfiguration, system reinforcement, and the addition of different types of equipment, such as distributed generation (DG) units, shunt capacitor banks (CBs), and voltage regulators (VRs). In addition, the optimal use of renewable and sustainable energy sources (RSESs) has become crucial for meeting the increase in demand for electricity and reducing greenhouse gas emissions. This requires the development of techno-economic planning models that can measure to what extent modern power systems can host RSESs. This article applies a new optimization technique called RUN to increase hosting capacity (HC) for a rural Egyptian radial feeder system called the Egyptian Talla system (ETS). RUN relies on mathematical concepts and principles of the widely known Runge–Kutta (RK) method to get optimal locations and sizes of DGs, CBs, and VRs. Furthermore, this paper presents a cost-benefit analysis that includes fixed and operating costs of the compensators (DGs, CBs, and VRs), the benefits obtained by reducing the power purchased from the utility, and the active power loss. The current requirements of Egyptian electricity distribution companies are met in the formulated optimization problem to improve the HC of this rural system. Uncertain loading conditions are taken into account in this study. The main load demand clusters are obtained using the soft fuzzy C-means clustering approach according to load consumption patterns in this rural area. The introduced RUN optimization algorithm is used to solve the optimal coordination problem between DGs, CBs, and VRs. Excellent outcomes are obtained with a noteworthy reduction in the distribution network power losses, improvement in the system’s minimum voltage, and improvement of the loading capacity. Several case studies are investigated, and the results prove the efficiency of the introduced RUN-based methodology, in which the probabilistic HC of the system reaches 100% when allowing reverse power flow to the utility. In comparison, this becomes 49% when allowing reverse power to flow back to the utility.