This paper proposes a standalone hybrid power generation system, fed by wind, solar power, and storage battery. Hybrid renewable energy sources (HRES) is an excellent solution for electrification of remote rural areas where the grid extension is difficult and not economical. Most of the isolated grid is powered by the diesel generation system. Such system has several problems like high cost of fuel with extra transportation cost& negative environmental effect etc. The reduction of pollutant emission is achieved by choosing to supply the load by hybrid system with battery of different capacity rather than diesel generator. The sources can operate in parallel to the grid or can operate in island, providing UPS services and smart grid controls individual small micro grid to monitor and control. This paper analyses the feasibility of hybrid power generation over wind & solar standalone system with various combination of battery capacity for reducing the system overall cost. For this hybrid system, the meteorological data of solar isolation is taken for Mumbai and the pattern of load consumption are studied and modeled for optimization of the hybrid energy system using HOMER software. HOMER (Hybrid Optimization Model for Electric Renewable) is a designed model that determines the optimal architecture and control strategy of the hybrid system.