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This paper proposes the possibility of using the diesel generator with renewable energy sources (RES) and compares the cost of energy of isolated pv-wind-diesel-battery-converter hybrid system with a stand-alone diesel generator for a rural region in Egypt. The isolated system is also evaluated to find out the quantity of air pollution. The system has to supply a load with an average value of 48 kW and a peak value of 71 kW. HOMER software is used to carry out the cost of energy (COE), net present cost (NPC) and environmental emissions (Kg/yr) calculations of optimization model. The simulation results show that the proposed hybrid system is very economical and environment friendly. The COE for the isolated hybrid power system is found to be 0.139 $/kWh which is more than half of the stand alone diesel generator system.