There is tremendous pressure on power systems all over the world to cater to an increasing demand for power. One of the measures which have been suggested to alleviate this problem to a certain extent is distributed generation. This could improve quality of supply in rural areas as well as connect several unconnected villages to the grid. This paper details the development of a model distributed generation system comprising of a solar and wind source. The system incorporates storage of energy as well as injection of energy into the grid.