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Due to lack of electricity, high diesel prices and CO2 emissions, solar power for water pumping is a good alternative and an appealing choice for conventional diesel-based pumping systems. The purpose of this study is to evaluate the impact of solar water pumping systems from a technical and economic point of view; to estimate the optimal system size and compare it with conventional diesel pumping systems in order to fulfill water requirements for irrigation and livestock needs. The selected site is an isolated agriculture area located Fayoum City, Egypt with a maximum required power of 443 kW peak for 121 m3/hr supplies. This study investigates three systems: diesel system, off-grid PV/battery system and PV grid extension (on-grid) system. The proposed optimization sizing methodology is performed using HOMER 3.13.8 software package with least net present cost and cost of energy. The capacity for pumping power is also estimated.