The paper describes a system level design and analysis of a solar photovoltaic (PV) integrated building scale hybrid AC/DC microgrid. The proposed architecture minimizes the AC/DC inter-conversion losses by allocating DC power to DC loads and AC power to AC loads via an intelligent power electronic controller. The system design ensures that optimum power is available for both DC and AC loads and the surplus power (if available) can be delivered to the utility grid. Conversion and distribution losses along with system efficiencies are analysed for AC-only (conventional), DC-only and the proposed AC/DC hybrid microgrid for a typical residential building. A scaled down hardware implementation shows lower distribution losses for the propsed architecture. Conversion losses analysed analytically and through simulations, also exhibit higher conversion efficiency for hybrid AC/DC microgrid architecture. It has been shown that for a typical residential building having an average load of 1.65kW, overall losses in AC/DC hybrid microgrid are approximately 63% lower as compared to losses in AC-only microgrid and approximately 18% lower as compared DC-only microgrid.