A hybrid renewable energy system may be used to reduce dependency on either conventional energy or renewable system. Optimization of hybrid renewable energy systems looks into the process of selecting the best components and its sizing with appropriate operation strategy to provide cheap, efficient, reliable and cost effective alternative energy. In this paper a methodology has been develop for optimum planning of hybrid PV-Wind system with some battery backup. The local solar radiation, wind data and components database from different manufactures are analyzed and simulated in HOMER to assess the technical and economic viability of the integrated system. Performance of each component will be evaluated and finally sensitivity analysis will be performed to optimize the system at different conditions. The system architecture includes PV System 100KW, 5 Northern Power NW100/19 Wind Turbine, Diesel Generator 10KW, Battery 25 (Beacon Smart Energy), Inverter 100KW and Rectifier 100KW. This paper gives the design idea of optimized PV-Solar and Wind Hybrid Energy System for Jabalpur Engineering College, Jabalpur electrical load over conventional electrical grid system for a particular site in central India (Jabalpur). For this hybrid system ,the meteorological data of Solar Insolation, hourly wind speed, are taken for Jabalpur -Central India (Longitude 79__ampersandsignomicron;.59__ampersandsignrsquo;and Latitude 23__ampersandsignomicron;.10__ampersandsignrsquo; ) and the pattern of load consumption of JEC electrical load data are studied and suitably modelled for optimization of the hybrid energy system using HOMER software. The simulation and optimization result gives the best optimized sizing of wind turbine and solar array with diesel generator. This system is more cost effective and environmental friendly over the conventional grid system. It should reduced approximate 70%-80% running cost over conventional grid system and also reduced the emission of CO2 and other harmful gasses in environments. It is expected that the newly developed and installed system will provide very good opportunities for MPEB in near future.