The study examined the Design, Performance, and Economic Feasibility of a Solar-Powered Water Pumping System for Rural Communities in Uganda. The objectives were to design and simulate a solar-powered water pumping system optimized for local hydrological and solar conditions, to empirically evaluate the system’s technical performance over a 12-month period, and to conduct a comprehensive economic analysis comparing its life-cycle costs to a conventional diesel-powered alternative. The system was designed using a 3.6 kW photovoltaic (PV) array coupled with a 10 kWh battery storage system to meet the community’s daily water demand of 5,000 liters and a total pumping head of 25 meters. Simulation results indicated an overall system efficiency of approximately 68%, demonstrating that the system could reliably supply water under the local solar irradiance and hydrological conditions. Empirical evaluation over one year revealed that average daily flow rates ranged from 4.5 to 5.0 m³/day, with peak performance during high solar irradiance months and minor reductions during the rainy season. System efficiency ranged from 66% to 71%, accounting for real-world factors such as dust accumulation and minor maintenance requirements. The system consistently met the community’s water needs, validating the simulation results and demonstrating the reliability of solar-powered pumping under local conditions. Economic analysis showed that, despite a higher initial capital cost (USD 12,000) compared to a diesel alternative (USD 7,500), the solar system’s annual operating costs were substantially lower (USD 150 versus USD 2,400). Life-cycle cost assessment over 20 years indicated a total cost of USD 15,000 for the solar system versus USD 31,500 for diesel, representing a 52% reduction in long-term expenditure, with a payback period of approximately five years. It was concluded that solar-powered water pumping systems were technically reliable, operationally efficient, economically viable, and environmentally sustainable for rural Ugandan communities. They provided consistent water supply, reduced dependency on fossil fuels, and offered long-term cost savings compared to conventional diesel-powered systems. The study recommended optimizing system design based on local conditions, implementing structured maintenance and monitoring programs, providing community training for operation and upkeep, promoting supportive policies and financial incentives, and scaling up successful systems to other rural communities to enhance water security and sustainable development.