Hybrid energy systems such solar and wind energy in combination with diesel generator can be applied successfully in areas where grid connection is not available or considered uneconomical. Their costs can be minimized through proper equipment sizing and load matching. This study represents the cost analysis of various models of hybrid systems for powering a remote area telecom tower located at an island village Barakolikhola (Latitude 20033’ N and Longitude 86073’ E) of Kendrapara district of Odisha in India. The model has been optimized using HOMER (Hybrid Optimization Model for Electric Renewable) software (2.68 version) package developed by National Renewable Energy Laboratory (NREL), Colorado, USA. From the load demand, the net present cost, operating cost per year and the energy cost/kWh for different models at the available resources were determined.