A hybrid energy system, comprising a diesel engine as the prime mover, electrical and absorption chillers, a backup boiler, and a multi‐effect distillation through thermal vapor compression (MED‐TVC) unit, has been utilized to meet the requirements of a residential complex. This study focuses on redesigning and optimizing the system to enhance environmental conditions, reduce pollutants, and minimize the use of fossil energy. The feasibility and design of renewable energy systems, including wind turbines (WTs), photovoltaic panels (PVs), and flat plate collectors (FPCs), have been examined. Genetic algorithm (GA) has been employed for optimization. The hybrid system employs 21 design variables, with 24 design variables chosen for optimization alongside renewable energies. The total annual cost (TAC), encompassing investment, operation, and pollution emission fines, has been chosen as the objective function for minimization. The results indicate that the use of WTs has not been cost‐effective, and solar energy can enhance the system's performance in Bandar Abbas, Hormozgan province in Iran. In the case of using a combined system, the objective function value was 2.0472 × 106 $/year, and when using renewable energies, the objective function became 1.6795 × 106 $/year. Thus, the proposed combined‐renewable system has reduced the objective function by 17.96%.