The primary concern of the Nations worldwide has been the growing energy demand. In view of changing energy scenario, renewable energy emerges as a feasible solution to address circumstances that do not permit centralized energy grid extensions owing to socio–economic problems. The present study has identified a remote cluster of villages located in Sringeri Taluk, Chikkamagalur district of Karnataka state in India. HOMER based Simulation approach was adopted to choose different combinations of PV-WIND-MH-HK systems based on strategies as Development side and Demand Side. The various resource combinations were investigated on the grounds of Net Present Cost (NPC) and Cost of Energy(COE). The results showed that Development side load strategy was optimal for PV-MH-HK combination with $217,191.5 and $0.166/kWh for NPC and COE values. On the contrary, Demand-side Load strategy yielded values of NPC and COE as $120,825 and $ 0.158/KWh respectively. The data indicated a poor wind potential at the area investigated, evident through omission of WIND system in optimal combination. The long term or multiyear simulations carried out for the optimal solution indicated 4.45% rise in COE owing to 4.54% drop in energy production through PV.