The main objective of this study is to explore opportunities to move forward to environment-friendly energy production in Malaysia. The environmental effects of fossil fuel usage and increasing electricity demand are the main factor driving towards renewable technology. To achieve the goal, this paper proposes a Grid Connected Solar Home System (GCSHS). The proposed GCSHS consists of solar and battery energy storage system, connected to the grid. Using HOMER software a simulation is carried out to examine the feasibility of GCSHS. From simulation result it is seen, per kWh energy of the proposed system is varied from USD 0.054 to 0.088. Considering the carbon tax, clean development mechanisms and oil price increase, this cost will be reduced. Using of GCSHS has both economic and environmental benefits. Cost benefit, environmental benefit, system description, and detail analysis are presented in this study. © 2016 Institution of Engineering and Technology. All rights reserved.