Stand-alone hybrid power systems has been attracting to supply energy to rural area in all aspects like, sustainability, reliability, and environmental protection, for communities living in areas where grid extension is not utilized. In this thesis photovoltaic, wind turbine, converter, and battery bank have been simulated and optimized using HOMERPro, which is used to generate feasible system with a minimum cost of electricity for 750 house hold in the rural community of Bezawit (outskirt from Dahir Dar city) in the regional state of Amhara, Ethiopia. And also these thesis have been proposed Cuk and Sepic converter: the proposed converters have been operates in both individual and simultaneous modes, and it eliminates the need of input filter to suppress the high frequency harmonics. MPPT have been also realized for both PV and wind sources by using perturb and observe method and Incremental conductance method respectively. Then based on the dynamic component models, a simulation model for the proposed hybrid PV/wind energy system using CUKSEPIC converters with MPPT controller have been developed successfully using MATLAB/Simulink. From HOMERPro simulation result, 10kW from wind turbine, 31.6kW photovoltaic panel, 96 unit batteries, and 40.5kW converter was selected because of the minimum cost. And also the cost of battery which is around $110,013.48 and converter is placed with cost of $86,203.10, followed with PV cost of $72,194.52 and wind with $31,558.98.And the power system Net present cost and the levelized COE are $299,970.09 and $0.3846, respectively, with operating cost of $10,793.56. As a result About72.5% of electricity is produced from PV array and 27.5% of electricity production produced from wind. MATLAB/Simulink simulation result shows that the overall system is efficient and coordination control of the proposed converter are effective. Therefore the overall system is efficient and cost effective. Keywords: Hybrid, HOMERPro, Photovoltaic, Wind energy, Battery bank, CukSepic converter, MATLAB/Simulink, Perturb and observe, Incremental conductance