We optimize a hybrid energy system configurations by analyzing various factors and project-specific parameters to minimize the cost of energy while meeting electricity demand. One case study shows that a combination of PV panels, a diesel generator, and a battery system achieved the lowest cost of energy at $.484 per unit with an 87% renewable fraction. Another configuration with multiple renewable sources yields a low cost of energy at $.510 per unit and an 87% renewable fraction. The sensitivity analysis is focused on examining the impact of changes in diesel prices, interest rates, and maximum annual capacity shortage on the levelized cost of energy (COE) for hybrid systems. Results show that as diesel prices increase, there is a corresponding rise in COE, highlighting the importance of considering fuel price fluctuations during project planning. An increase in interest rates also leads to higher COE due to increased borrowing costs for companies and investor expectations for higher returns. Additionally, an increase in maximum annual capacity shortage would require additional resources at higher costs to meet growing energy demands while keeping PV production constant. By understanding these impacts, stakeholders can make well-informed decisions regarding the feasibility and sustainability of renewable energy systems.