Rural electrification is a fundamental factor of poverty mitigation and rural growth of a nation. In India, electricity has not played an active role in the socio-economic progress of the village. Gross Domestic Product (GDP) is growing by 8%, whereas the involvement of agriculture division is 1.9%. The government of India has encouraged the goal of providing electricity to all villages in various phases. Therefore, the aim of this research was to define the techno-economic analysis of decentralized Small Hydro Power projects in Kerala with the help of RET Screen expert software. The objectives are to explore the potential hydropower to be harvested by Small Hydro Power for rural electrification, to assess financial saving and cost analysis and to investigate the environmental impact of the Small Hydro Power in Kerala. The RET Screen expert is used to assess the economic feasibility of a Small Hydro Power system and to recommend the possibility of installing the technology in the Meenvallom SHP in Kerala. The RET Screen expert is a Clean Energy Management Software developed by the Government of Canada, which is a free-of-charge decision support software for pre-feasibility or feasibility analysis and also ongoing energy efficiency performance analysis (Netscreen Canada). An attempt has been made in this study is to evaluate the features of rural electrification in Kerala and the viability of Small Hydro Power (SHP).