Installing surge protection devices in a hybrid photovoltaic (PV)–wind system is essential to guarantee the survival of the system’s components. If the surge arresters are connected without taking into account the recommendations given by standards, the equipment to be protected might be damaged despite the energy coordination of the arresters. In this study, nonlinear surge protective devices (SPDs) are designed for a multi-MW hybrid system based on lightning protection standards with optimised threat level ratings to investigate the mitigation of lightning transients to an acceptable level. The system is implemented using Power System Computer-Aided Design for Electromagnetic Transients including Direct Current (PSCAD/EMTDC) software. It comprises a 2 MW PV farm, a 2 MW wind farm, and a backup energy storage system (ESS), which are all connected to a 132 kV grid via a step-up transformer and a transmission line. The results were obtained at critical system nodes for two standard lightning current surges, i.e., 1/10 µs and 10/350 µs, considering two lightning strike point scenarios with and without a lightning protection system (LPS). The simulation results showed that the connected SPDs could successfully limit the transient overvoltage in the system to an acceptable level. The analysis in this work is crucial for designing, operating, and maintaining a hybrid PV–wind system. It can help to find the potential vulnerability areas within such a system and implement appropriate protection measures since there is no available lightning standard for such systems. Additionally, it assists the system operators in increasing the uptime and dependability of their RE systems, limiting expensive downtime and environmental effects while optimising energy output. Based on the results obtained, recommendations were made for lightning protection developers.