Demand for electricity in rural India has been met by extending the grid electricity distribution network. But the costs of extending lines to rural facilities are prohibitively expensive. Grid extension varies in cost on the distance to be covered, the land, utility and the size of the load. Considering these challenges, rural electrification will require considerable skill in the selection and implementation of technical and economic strategies for electrification. In rural places where the condition and quantity of grid power is expensive or insufficient, renewable energy alternatives may be the only option. So this paper estimates the domestic, industrial, agricultural, BTS load in a remote village called Kadayam, Tamilnadu, South India, identifies the optimal option for RE based electrification and compares it with conventional grid extension using HOMER software. The solution obtained from HOMER software shows that a hybrid combination of solar/wind/hydro/battery is a cost effective, sustainable, techno-economically and environmentally viable alternative to grid extension.