Solar panels installed over canals provide various advantages like excess power due to less temperature, reduction in the quantity of water loss due to evaporation etc. Water running in the canals also provides a source for small hydro power plants (SHP). This paper presents the control of SHP and Photo-Voltaic (PV) power of similar ratings operating together in a micro-grid. Limits imposed on hydraulic turbines due to cavitation have been considered. The SHP using synchronous machine is provided with integral controller and mechanical governor for frequency regulation in the micro-grid. The PV is maintained to operate at its maximum power. For part loading conditions, the PV is operated in de-rating mode so as to avoid operating the hydraulic turbine below manufacturer's operating limits and to maintain the desired system frequency. Non-linear models of the governor, SHP and the PV has been considered in the study. © 2016 IEEE.