This study aims to design and select an optimal hybrid photovoltaic (PV) energy system for rural areas in the Narmada Valley (21.68°N, 74.92°E), Madhya Pradesh (MP) state, India. Two case studies in Narmada Valley (farmhouse and healthcare) were analysed for technical, economic, environmental, and reliability parameters, using MATLAB/Simulink and HOMER Pro software. The result indicates that the PV/BB/DG farmhouse energy system has capital cost of ₹2643200 (CC), an operating cost (OC) of ₹955763, fuel cost (FC) of ₹7240725, net present cost (NPC) of ₹3496135, an annualized cost (AC) of ₹257246 and cost of energy (COE) of ₹12.05. The PV/BB/DG healthcare energy system is CC ₹528640, OC ₹221191, FC ₹1979132, NPC ₹802055, AC ₹53213 and COE ₹12.34. The failure rate, expected energy not supplied (EENS) and loss of load probability (LOLP) of the farmhouse hybrid PV/BB/DG system are 0.0501/yrs, 0.0927 hrs/yrs, 0.4356 kWh/hrs and 1.05822E-05, respectively. The healthcare hybrid PV/BB/DG system failure rate (0.0117199), interruption duration (0.09009), system unavailability (2.16 hours.), EENS (0.234234 kWh/yrs), and LOLP (1.02842E–05) are all much lower than those of other configurations. Hybrid solar PV/BB/DG energy systems provide reliable, cost-effective, reduced environmental impact, sustainability, and job creation in rural areas.