The risks and challenges faced by human society at the moment are global warming, climate change and pollution. In addition to their effect on the atmosphere, the quantity of fossil fuels is beginning to decrease, and countries have taken steps to encourage greater use of renewable energy resources. This article explores the feasibility of supplying electricity from a hybrid power system (HPS) comprising wind/photovoltaic (PV) and batteries. Taking into account residential buildings that consume the largest portion of energy in Saudi grid<span style="font-family:Verdana;"><span style="font-family:Verdana;"><span style="font-family:Verdana;">,</span></span></span><span><span><span style="font-family:;" "=""><span style="font-family:Verdana;"> Saudi Arabia, Riyadh is the preferred city with distinctive geographical and climatic conditions. The hourly electricity demand data must be over 8760 hours during a 1-year analysis in order to assess the optimum design and operational planning of the HPS. The economic analysis is carried out by applying HOMER software on the basis of net present cost (NPC), energy cost (COE) and the renewable fraction for all situations. In addition, to specify the effect of fuel costs on the scheme, sensitivity tests are carried out by considering two separate tariff rates for residential consumers. The results of the economic analysis show that current tariff is not economic to </span><span style="font-family:Verdana;">use HSP under warm and temperate climate conditions compare to using</span><span style="font-family:Verdana;"> electricity from grid and the expected forecasted tariff shows it’s economic to use HSP compare to grid electricity.</span></span></span></span>