This paper presents economic and reliability evaluation of solar photovoltaic energy system for rural electrification. The solar photovoltaic energy system supplies energy to irrigation and farmhouse electrification. The performance of different configurations based on photovoltaic, diesel generator and battery backup in terms of technical, economical, environmental and reliability indices have been compared. Motivation behind this work is to improve living standard of rural resident using more reliable, cost-effective and sustainable rural electrification. Hybrid Optimization Model for Electric Renewable (HOMER) software is used for economic and environmental analysis. Frequency-duration method is used for reliability indices i.e. failure frequency and mean durations. The result shows that, hybrid PV/battery/diesel system is more economical, environment friendly and reliable system as compared to other configuration. This research work will help in decision making for policymakers and system designers, to determine optimal system in rural electrification before installation.