In the current scenario, sustainable power generation received greater attention due to the concerns of global warming and climate change. In the present paper, a Solar Photovoltaic/Diesel Generator/ Battery-based hybrid system has been considered to meet the electrical energy demand of a remote location of India. The cost of the energy of hybrid system is minimized using a Biogeography-based Optimization (BBO) algorithm under the constraints of power reliability, carbon emission and renewable energy fraction. Load following and cycle charging strategies have been considered in order to investigate the performance analysis of the proposed hybrid system. Further, different component combinations of specifications available on the market are presented for detail analysis. The minimum cost of energy of the proposed hybrid system is obtained as 0.225 $/kWh.