The aim of this paper is to model and design a hybrid renewable energy system to meet fulfill the primary load for an urban residential area located in Sanandaj in the western region of Iran. The hybrid system consists of Photo-voltaic (PV) array, wind turbines, batteries and diesel generators. Different combination of wind turbines, PV, batteries and generators were evaluated in order to determine the optimal combination of them based on the minimum Net Present Cost (NPC) index. Sensitivity analysis is done to evaluate the impact of wind speed and fuel cost variations on the results. Finally, evaluating the economic of plan by payback period and grid extension analysis was performed. The proposed hybrid system is modeled, optimized and simulated using Hybrid Optimization Model for Electric Renewable (HOMER). The simulation and optimization results show that the optimal integrated renewable energy system configuration consists of 150 kW PV array, 1 units Fuhrllinder 30 wind turbine, 40 units Surrette 6CS25P battery cycle charging, and a 100 kW AC/DC converter so that the PV power can generate electricity at 264,815 kWh/year while the wind turbine system can generate electricity at 20,364 kWh/year, giving the total electrical generation of the system as 285179kWh/year. This would be suitable for deployment of clean energy for uninterruptable power performance in the residential area. The economics analysis result found that the integrated renewable system has total NPC of 972,162 US Dollar.
