Hybrid energy systems are successfully applied in areas where grid extension is practically impossible or uneconomical. This paper reports the results of optimization of hybrid energy system model for electrification of remote village Gobindapur, located at the foot hills of Similipal forest (Latitude 21055’ N and Longitude 86034’ E) of Mayurbhanj district of Odisha in India. The model is developed with the objective of minimizing cost function based on demand and potential constraints. 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 capital cost, cost of energy for different types of resources and optimised configuration of hybrid system are determined.