ABSTRACT Remote hilly hamlets in India still face acute energy security problems. As a solution, the present study discusses a Novel Hybrid Solar Pumped Storage Powerplant that can operate in grid-connected and standalone modes to provide stable power throughout the year. Genetic algorithm-based optimization techniques and actual resource and demand data were utilized to optimize the system’s design. Site-specific power generation and grid interaction models were established and multiple operational modes of the system were simulated with a system dynamics modeling approach. Results show a 73% reduction in greenhouse emissions, a levelized energy cost of 0.09$/kWh, and assured generation security of 82% during standalone operation. The probability of power supply loss during the grid-connected operation was minimized, and 20% was incurred during standalone operation. This innovative solution can provide reliable and sustainable power to remote hilly hamlets, contributing to the Sustainable Development Goal (SDG)-7 and helping India achieve its COP-26 & 27 commitments. As the government takes active initiatives to improve grid stability in remote locations, this system can be effectively implemented and scaled up to provide a cost-effective and environmentally friendly solution for storage and utilization of solar power.