Costly and eco-destructive diesel based systems are usually used for electrifying rural areas in Malaysia. Fuel transportation is another obstacle in this regard. Moreover, unpredictable fluctuation of fuel price makes the system cost unstable. The diesel based systems can be replaced with renewable energy (RE) based systems. Thus, a feasibility analysis is necessary to assess the potentiality of RE resources. This paper analyzes the potentiality of renewable energy in Sarawak, East Malaysia. The wind speed is insufficient, but solar energy is abundant at the location. Hence, the feasibility of photovoltaic (PV), Battery and Fuel Cell (FC) based systems are investigated for the load of a village longhouse comprising 50 families located in Kapit, Sarawak. Both systems, including FC (PV/Battery/FC) and excluding FC (PV/Battery) are analyzed and compared with conventional diesel based system. The analysis focuses on net present cost (NPC) and cost of energy (COE). Other cost parameters such as installation cost, operation and maintenance cost (O&M), operating cost are also analyzed. HOMER software provided by National Renewable Energy Laboratory (NERL) is used as an analyzing tool. This paper also focuses on the operational strategy and sensitivity analysis of the hybrid system for optimal performance. The HOMER optimization results and sensitivity analysis show that the PV/Battery system is economical and environmentally friendly with total net present cost of $ 335,297 and cost of energy of 0.323 $/kWh with no emission. Thus it can be a suitable replacement of diesel based system. The FC based system has higher costs; thus despite of its benefits, it is not suggested as the best system for the situation.