World's large population lives in remote areas where electricity is unavailable or unreliable supply. For electricity supply, a low‐cost, minimum‐emission hybrid renewable energy system is necessary due to power shortages or unavailability, high electricity costs, and large greenhouse gas emissions. The current work develops a standalone hybrid power generating system and assesses its techno‐economic feasibility for rural sites in the Lucknow area of Northern India. To address the electric load requirement, the proposed work includes a system that includes a solar photovoltaic (SPV) module, a lead‐acid battery, a wind turbine (WT), and a diesel generator (DG). The system is sized and optimized using the hybrid optimization of multiple energy resources software. In this off‐grid system, the proposed system is intended for a home load need of 52.00 kWh/day with a peak of 11.04 kW. The technical and financial specifications are drawn from the local Indian market for the proposed standalone system. In this article, seven different resource combinations are investigated. A combination of 13 kW DG, 16 kW SPV, 50 kWh lead‐acid battery, 9 kW inverter, and 4 kW WT produces the best optimal system. With a 98.4% renewable portion, the cost of energy and total net present cost are $0.162/kWh and $57 390, respectively. The sensitivity analysis inflation and discount rates are 5.5% and 8%, respectively. As a consequence of the findings, we can conclude that the suggested standalone system is more cost‐effective for rural areas in Northern India. [ABSTRACT FROM AUTHOR]