A primary and necessary focus in creating a greener environment is the conversion of existing power-generation sources to renewable power sources in the near future. Another important focus is to develop sustainable household power generation to a low-voltage electricity grid with a power purchase and selling facility. To help with achieving the above vision, the objective of this work is to critically analyze the existing low-voltage distribution system and make suggestions for restructuring it to the low-voltage interconnected microgrid (MG). The test was carried out in the Tamil Nadu Electricity Board (TNEB( 100kVA transformer feeder which was connected to supply around 100 houses with electricity. The performance analysis of the proposed system was examined through different case studies, represented as a normal operating condition of the existing distribution system and a reconstructed and interconnected MG to the TNEB grid. The project was designed and analyzed using PSCAD software. The results discussed in the project are helpful in examining the effects of multiple distributed energy resources on distributed generation. In future, knowledge of these effects may be helpful for rural area electrification.