Nowadays, microgrids with hybrid renewable energy sources are increasing, and it is a promising solution to electrify remote areas where distribution network expansion is not feasible or economical. This study aims to find an ideal hybrid system grounded on solar, wind, diesel, biomass, hydro, and battery. This study utilizes the hybrid optimization model for electric renewable (HOMER) software to size the important components, perform technical, financial evaluation, renewable factor, estimate the harmful emissions, and sensitivity analysis. For optimum system selection, the lowest cost of energy is used as the criteria. Four different configurations of renewable energy sources are analyzed and found PV-WT-MH-CT-BT-DG-BG is the most feasible hybrid system amongst all configurations. The proposed PV-WT-MH-CT-BT-DG-BG hybrid system is more economic as the lowest cost of energy 0.196, low operating cost 36,184, low net present cost 831,217. Also, this hybrid system is more environmentally friendly as it has less emission and a high renewable factor of 81.2%. © 2013 IEEE.