Utilization of the electrical energy is increasing with the increasing of population and the supply of electrical energy is unable to meet the demand due to the depletion of non-renewable resources and the losses in the power transmission and the power controlling devices. The continuous power generation co-generation plant i.e hybrid system technologies are being developed and power regulating is controlling with the voltage source inverter. In this paper hybrid system is developed wind and solar energy sources are designed with its basic equations and it is connected to grid. The parameters of the system are controlled using the voltage sources inverter. To control the power flow from co-generation system to grid through load real and reactive power control technique is used to regulate the control parameter i.e PI values are properly tuned to reduce the harmonic effect in the system. The system is tested with the different conditions by changing the load requirement and the generation parameter. The harmonic effect of the system with different controller parameter values is shown and the magnitude of the harmonics is reduced with proper control parameters. Using the Matlab Simulink the software the designing and the performance of the system is done. © Research India Publications.