The aim of this paper is to find the best hybrid combination from the available resources in a given village location that can meet the electricity demand in a sustainable manner and to see whether this is a cost effective solution or
not. A model of electricity generation was structured based on multiple combinations of hybrid system with the application of HOMER energy software at an identified off-grid village location in Iraq. This model analyzes the techno-economic factors with respect to the cost of energy COE generation and then compares these performance indicators to grid extension related costs.