This paper presents the economic analysis and investigates on the application of Hybrid wind/PV power generating systems for utilization as stand- alone system. Linear programming (LP) is used to calculate the sizes of the components of a hybrid renewable energy system (HRES) in MATLAB® that minimize the present worth of capital and operating costs. The constraints are the energy demand, components of HRES, technological options, cost of components, satisfying battery autonomy hours and keeping a limit on the renewable energy resources. It has been used to determine the optimum generation capacity and storage needed for a stand-alone hybrid Wind/PV system for three locations in Karnataka (India); Mangalore where the wind speed is predominant, Hubli where the solar radiation is predominant and Belgaum where both resource are available but less abundant, with a typical residential load [1], [6]. Generation and storage units for each system are properly sized in order to meet the annual load and minimize the total annual cost to the customer. In addition, an economic analysis has been performed for the above three scenarios and evaluate the economic feasibility of the HRES according to the net present value (NPV). Annual average daily values for load, average monthly wind speed, and insolation have been used. [ABSTRACT FROM PUBLISHER]