Purpose – Renewable generation is a main component of most hybrid generation systems. However, randomness on its generation is a characteristic to be considered due to its direct impact on reliability and performance of these systems. For this reason, renewable generation usually is accompanied with other generation elements to improve their general performance. The purpose of this paper is to analyze the power generation system, composed of solar, wind and diesel generation and power outsourcing option from the grid as means of reserve source. A multi-objective optimization for the design of hybrid generation system is proposed, particularly using the cost of energy, two different reliability indexes and the percentage of renewable energy as objectives. Further, the uncertainty of renewable sources and demand is modeled with a new technique that permits to evaluate the reliability quickly. Design/methodology/approach – The multi-state model of the generators and the load is modeled with the Universal Generating Function (UGF) to estimate the reliability indexes for the whole system. Then an evolutionary algorithm NSGA-II (Non-dominated Sorting Genetic Algorithm) is used to solve the multi-objective optimization model. Findings – The use of UGF methodology reduces the computation time, providing effective results. The validation of reliability assessment of hybrid generation systems using the UGF is carried out taking as a benchmark the results obtained with the Monte Carlo simulation. The proposed multi-objective algorithm gives as a result different generators combinations that outline hybrid systems, where some of them could be preferred over others depending on its results for each independent objective. Also it allows us to observe the changes produced on the resulting solutions due to the impact of the power fluctuation of the renewable generators. Originality/value – The main contributions of this paper are: an extended multi state model that includes different types of renewable energies, with emphasis on modeling of solar energy; demonstrate the performance improvement of UGF against SMC regarding the computational time required for this case; test the impact of different multi-states numbers for the representation of the elements; depict through multi-objective optimization, the impact of combining different energies on the cost and reliability of the resultant systems.