Hybrid renewable energy system is the combination of two or more energy sources which is used to supply the targeted load. One of the most important applications of renewable energy system is the installation of well design hybrid energy system in remote areas where grid extension is very difficult and costly. But the proper design of such system is the challenging task as the coordination between different energy sources; energy storage and load are very complicated. An optimization of hybrid renewable energy system is the process of selecting suitable components, its sizing and control strategy to provide efficient, reliable and cost effective alternative energy to the society. This paper presents the design of an optimized hybrid renewable energy system consisting of photovoltaic, wind generator with battery and converter. The system has been optimally simulated by using IHOGA (Improved Hybrid Optimization Genetic Algorithm) tool developed by the Electric engineering department of the university of Zaragoza, Spain. The paper also described the sensitivity analysis of hybrid system which help to access the effect of uncertainty or change in the variable and finding the most suitable solution for hybrid system.