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A project has been initiated in South Africa to design, model, build, and evaluate an easy to install solar fueled combined heat and power (micro-CHP) system to supply off-grid rural villages and eco-estate communities. This study describes the design of a model that offers a combined 3 kW peak electrical, 12 kW peak thermal, stand-alone solar power technology solution with microgrid storage to deliver power, and heat when the sun is shining and after sunset (at night time). The CHP demand side management system manages power and heat distribution to individual households in a small rural village based on a proposed smart microgrid technology solution. The solution aims to balance the heat/power demand side requirements based on digital feedback on heat/ power utilization patterns and user demand. Aspects of the micro-CHP system microgrid control are discussed while a modular smartgrid solution is selected for smart microgrid applications.