This thesis tried to determine the socioeconomic contributions of a renewable-hybrid energy system in San Juanico, Mexico. It also tried to analyze if the hybrid system was designed based on sustainable development principles. A survey of 91 electrified homes was conducted in San Juanico to gather information on consumer satisfaction and data analyzed using simple means and group mean comparisons, with suitable tests as needed. A binomial probit model for two dependent variables was applied to survey data. An energy price-comparison exercise was conducted as well. Findings showed the hybrid system had suffered from weak institutional frameworks, low community participation and a lack of long-term system and financial planning. Although the system made improvements in quality of life, it had not been reliable and lacked organizational ability to supply rural electricity in a sustainable fashion.