A hybrid method for using sunlight and light-emitting diode (LED) illumination powered by renewable solar energy for indoor lighting is simulated and presented in this study. We can illuminate an indoor space and collect the solar energy using an optical switching system. When the system is turned off, the full spectrum of the sunlight is concentrated by a concentrator, to be absorbed by solar photovoltaic devices that provide the electricity to power the LEDs. When the system is turned on, the sunlight collected by the concentrator is split into visible and non-visible rays by a beam splitter. The visible rays pass through the light guide into a light box where it is mixed with LED light to ultimately provide uniform illumination by a diffuser. The non-visible rays are absorbed by the solar photovoltaic devices to provide electrical power for the LEDs. Simulation results show that the efficiency of the hybrid sunlight/LED illumination with the renewable solar energy saving design is better than that of LED and traditional lighting systems.