Rural electrification is the process of bringing electricity supply to rural and remote areas. In this research an off –grid hybrid solar PV, wind turbine and diesel generator design system was done to provide electricity for the households and the school in North shewa,Ethiopia,Merhabete Woreda, KosoTerehna Kebele where the national grid is not connected yet. The village is geographically located at 10° 6′ 33″ N and 39° 0′ 39″ E. Since biomass is being traditionally used in this village for cooking purpose and small kerosene wick and fire wood for lighting purpose, supplying electricity for the community from renewable energy source is needed. Therefore, an off-grid system combining from solar PV, wind turbine and diesel generator with the most suitable design was done in order to collect the available energy sources to satisfy the need in basic energy demand. The designing procedure was supported by a HOMER software. While designing the hybrid system, ten years average solar radiation data fro m Ethiopian meteorological agency, Ten years average wind speed, system components’ size, operating time and cost were given for the software. Based on the simulation result obtained from the HOMER software, the designed hybrid system was estimated to supply a total energy of 75,620kwh/year for the community. The PV array can deliver 69,682kwh of energy per year for the required load demand. The diesel generator can also provide an energy of 5633kwh per year. The wind turbine in the hybrid system can produce only 305kwh energy per year. The PV array can provide 92% of the total energy per year. The initial capital cost of the system is $48,320 and the total net present cost of the system is $96,738 per year. The total annualized cost is $7500, the operating cost is $3788 per year and the cost of energy is $0.144/kWh. From this study it was found that Photovoltaic systems are capable of operating reliably and are the best option to supply electricity for the society in the selected area. Key words: rural electrification, solar PV, off-grid, energy demand, wind energy, hybrid system, HOMER