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This paper mainly focuses on the optimal design of a grid-dependent and off-grid hybrid renewable energy system (RES). This system consists of Photovoltaic (PV), Wind Turbine (WT) as well as Fuel Cell (FC) with hydrogen gas tank for storing the energy in the chemical form. The optimal components sizes of the proposed hybrid generating system are achieved using a novel metaheuristic optimization technique. This optimization technique, called Improved Artificial Ecosystem Optimization (IAEO), is proposed for enhancing the performance of the conventional Artificial Ecosystem Optimization (AEO) algorithm. The IAEO improves the convergence trends of the original AEO, gives the best minimum objective function, reaches the optimal solution after a few iterations numbers as well as reduces the falling into the local optima. The proposed IAEO algorithm for solving the multiobjective optimization problem of minimizing the Cost of Energy (COE), the reliability index presented by the Loss of Power Supply Probability (LPSP), and excess energy under the constraints are considered. The hybrid system is suggested to be located in Ataka region, Suez Gulf (latitude 30.0, longitude 32.5), Egypt, and the whole lifetime of the suggested case study is 25 years. To ensure the accurateness, stability, and robustness of the proposed optimization algorithm, it is examined on six different configurations, representing on-grid and off-grid hybrid RES. For all the studied cases the proposed IAEO algorithm outperforms the original AEO and generates the minimum value of the fitness function in less execution time. Furthermore, comprehensive statistical measurements are demonstrated to prove the effectiveness of the proposed algorithm. Also, the results obtained by the conventional AEO and IAEO are compared with those obtained by several well-known optimization algorithms, Particle Swarm Optimization (PSO), Salp Swarm Algorithm (SSA), and Grey Wolf Optimizer (GWO). Based on the obtained simulation results, the proposed IAEO has the best performance among other algorithms and it has successfully positioned itself as a competitor to novel algorithms for tackling the most complicated engineering problems. [ABSTRACT FROM AUTHOR]