This paper solves the allocation planning problem of integrating large scale renewable energy hybrid distributed generations and capacitor banks into the distribution systems. Extraordinarily, the integration of renewable energy hybrid distributed generations such as solar photovoltaic, wind, and biomass takes into consideration the impact assessment of variable generations from PV and wind on the distribution networks’ long term dynamic voltage and small-signal stabilities. Unlike other renewable distributed generations, the variability of power from solar PV and wind generations causes small-signal instabilities if they are sub-optimally allocated in the distribution network. Hence, the variables related to small-signal stability are included and constrained in the model, unlike what is obtainable in the current works on the planning of optimal allocation of renewable distributed generations. Thus, the model is motivated to maximize the penetration of renewable powers by minimizing the net present value of total cost, which includes investment, maintenance, energy, and emission costs. Consequently, the optimization problem is formulated as a stochastic mixed integer linear program, which ensures limited convergence to optimality. Numerical results of the proposed model demonstrate a significant reduction in electricity and emission costs, enhancement of system dynamic voltage and small-signal stabilities, as well as improvement in welfare costs and environmental goodness.