The photovoltaic (PV) technology potential for Yemen is relatively high, based on this fact, there are many isolated and remote locations located far away from the electrical national grid and cannot be integrated in the near future. Therefore, the electrification of these rural areas using PV system is very suitable solution to solve the problem of lighting and access to the development of these areas. This paper presents a study on design and cost estimation of stand-alone photovoltaic PV system (SAPS) to supply the required electricity for these villages. The sizing of the suggested SAPS is achieved, such as radiation data and electrical load for the typical household in the target villages also taken into account during the sizing steps. Furthermore, there are a maximum power point tracking (MPPT), an inverter, charge controller and lead acid batteries were designed. The MATLAB/Simulink was run to simulate the PV array sizing and its characteristics depending on incremental conductance MPPT technique to enhance the efficiency of the modules and get maximum available power. The simulation result has been matched the sizing calculation result. Finally, life cycle cost (LCC) analysis was used to evaluate the economic feasibility of the system. The economical results proved that, there is a difference between the conventional energy systems and PV system in that they have a low operating cost and high initial cost. The findings of the study encouraged the use of PV systems in order to electrify the remote Yemeni areas.