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All conventional energy resources are withering day by day. Ergo we have to shift from conventional to non-conventional energy resources. In this paper the combination of conventional and non-conventional energy resources takes place. We can give uninterrupted power by using hybrid energy system. Basically this system involves the integration of two energy system that will give continuous power. Solar panels are used for converting solar energy and diesel generator are used for producing electricity. Optimization of hybrid renewable energy systems looks into the process of selecting the best components and its sizing with appropriate operation strategy to provide cheap, efficient, reliable and cost effective alternative energy using HOMER. The optimization results of hybrid energy system consists of solar photovoltaic system with battery, inverter and generator and has the lowest total net present cost (NPC) at $323568 and cost of electricity (COE) of $0.384per Kwh.