A complete hybrid system including a photovoltaic cell, a wind turbine, and battery is modeled to determine the best approach for sizing the system to meet the electrical energy needs of a residential building. In evaluating system performance, the city of Tehran is used as a case study. Matlab software is used for analyzing the data and optimizing the system for the given application. Further, the cost of the system design is investigated, and shows that the electrical cost of the hybrid system in Tehran is 0.62 US$/kWh, which is 78% less expensive than a wind turbine system and 34% less expensive than a photovoltaic system.