Considering the low environmental cost and good social benefits of clean energy power generation, we propose the concept of environmental-friendly model. We also describe power expansion planning model in detail, that helps to incorporate a variety of power generating units, including solar-power, and hydropower, and which appropriately addressed the restrictions of the energy market environment. Taking into account the constraints of cascade hydropower and the uncertainty of solar power, multiple objectives of economic efficiency, load tracking coefficient, and accommodation degree of solar power are formulated. An optimal scheduling model for hybrid solar-hydro power generation system in demand side is established. This model is solved by using an improved genetic algorithm. In various seasons, weather conditions, and time intervals, simulation examples are used to identify the optimal output of the source side and the minimum load transfer volume, as well as the validity and correctness of the suggested method. By means of comparing and analyzing the reliability indices, the impact of solar-hydro power on distribution system is researched and the results show that interconnection of solar power with hydro power can play a certain role in the improvement of power system reliability.