Because of the lack of an electricity transmission and distribution grid in remote and inaccessible areas due to the high cost of transmission line construction as well as the unsuitable geographical conditions, and considering the factors influencing sustainable energy production, renewable energy appears to be a viable solution. This paper evaluates the solar and wind potential of Magabheni village in KwaZulu Province, south of Durban. The system includes a wind, PV solar, battery bank, and diesel generator for backing up the off-grid system. The off-grid system was compared to the on-grid system to determine the lowest-cost and most reliable system configuration for the chosen location. HOMER Pro is used to design and select systems based on the lowest net present cost (NPC) and cost of electricity (COE). A sensitivity analysis of the impact of key variables on site performance is carried out. According to the findings of this study, on-grid energy systems have more effective NPC, O&M, COEs, and RF compared to off-grid systems. The study found that, the Solar PV-Wind Energy-Diesel Generator system (Off-grid) and PV-WE-Grid (on-grid) configuration amongst other configurations are the most feasible and has the lowest COE. This analysis demonstrates that NPC, COE, O&M, and renewable fraction are sensitive to variations in all the considered sensitivity parameters.