A solar tracking system is the device for orienting solar photovoltaic modules and solar thermal collectors toward the sun. This study presents a microcontroller based energy efficient hybrid automatic solar tracking system with a view to assess the improvement in solar conversion efficiency. The two-axis solar tracking system is constructed with both hardware and software implementations. The proposed tracking system uses a new solar sensor position with an adaptive feature. The economical analysis of the solar tracking systems is an important element of this reaearch. A comparative analysis was performed using three systems, i.e., hybrid, dual-axis tracking, single-axis and stationary module. The results showed that the use of the dual-axis tracking system produced 18% gain of power output, compared with a single-axis tracking system. The gain of output power with the dual-axis tracking system was much higher (54%) when compared with a stationary system inclined at 23.5° to the horizontal which is reasonable. Considering the state of the art of the technology, successful strategy, robust control philosophy and the potential added benefit of this research can be employed on a large scale in sustainable manner.