A hybrid renewable energy system, which could provide a reliable energy alternative for conventional Battery systems is implemented in this paper. The primary requirement is that the hybrid energy system should be cost-effective while meeting the energy demand. The hybrid system is implemented to a area located in Uttarakhand, India using solar photovoltaic cells to supply power during hot and humid conditions and using wind turbine generators to supply power during windy conditions. The wind turbine generators and photovoltaic cells are used in a combined manner along with the diesel generators as in case if it fails to meet the demand. In order to meet the requirements, modified Differential Evolution (DE) Algorithm is being implemented. Moreover, the effectiveness of the performance is evaluated by comparing the results obtained from modified DE with other optimization algorithms. In comparison with other optimization algorithms, results indicate that the implementation of the modified DE algorithm helps in obtaining the best cost effective solution for the system along with meeting the energy demand.