Renewable energy is the only solution to the problem of depleting environmental conditions and energy shortage. Animal manure is a major output waste of rural areas and it can be converted into biogas through anaerobic digestion. Biogas is mainly CH4 which is combustible and can be used as fuel. In Pakistan, most of the rural population is relying on agriculture and cattle farming. Agriculture gives us hydro potential and cattle farming gives us biogas. And both of these resources, if used properly, can drastically improve the socioeconomic condition of rural areas. The sub-rural tehsil of Division Bahawalpur, “Mandi Yazman” is considered as a study area with the domestic load. This paper gives a techno-economic analysis of microgrid based on biogas, solar and hydropower to find out the best possible combination for lowest COE (cost of energy) and NPC (net present cost) according to the available resources in the proposed site.