Bangladesh being a developing country is struggling for the self-sufficiency of electric power for a very long time. In this run renewable energy can play an important role for electricity generation. Bangladesh abuts by Bay of Bengal, as a result the southern areas face around 2∼5 mof tidal head/height rise and fall and as it is in the tropical region it gets an average daylight of 7∼8 hper day. Thus the hydro (tidal) energy and solar energy can be the key points to meet the scarcity of power. This paper discusses a model of possible small hybrid power generation system consisting of a PV generation unit with storage and a micro-hydro generation unit and a diesel generator which can mitigate the rising energy demand at the southern areas of Bangladesh. In this paper the economic viability is discussed along with the technical aspects to set up such system via HOMER analysis. Moreover the system cost was analyzed together with a comparison of other system costs of similar capacity.