The reduction of fossil fuels which produce CO2 emission that damage the environment, can be done by implementing renewable energy-based power generations, such as solar and wind. This research designs a hybrid energy system by optimizing the use of existing diesel generators through the integration of renewable energy sources, such as solar photovoltaic and micro wind turbine, and is equipped with an energy storage system. This research uses HOMER Pro software to determine the optimal capacity of hybrid system components, and to calculate the cost of energy (CoE). Furthermore, the hybrid system configuration is analyzed by applying several objectives. The objectives of the hybrid system design are to prioritize a maximum renewable energy penetration ratio within permitted annual capacity shortage and with the CoE lower than the existing CoE. The research results show that the proposed hybrid energy system can provide a renewable energy penetration ratio of 57.1% with CoE of IDR 3,510/kWh.