Access to electricity services, especially in rural areas, is a significant developmental challenge in Ethiopia. As a consequence, the inhabitants in these regions heavily rely on traditional biomass for cooking, small-capacity diesel generators, and limited solar bulbs for lighting. However, these energy sources not only incur high costs but also contribute to pollution and fall short of supporting essential aspects such as economic growth, healthcare, education, water supply, and industrialization. To address this pressing issue, this study is dedicated to developing a solution by focusing on modeling and optimizing an off-grid hybrid solar-wind energy system with battery storage for rural electrification in Ethiopia, with Ferfer kebele in the Somali Regional State as the case study. HOMER software is utilized for simulation, optimization, and sensitivity analysis. The selected optimal hybrid system is compared with both diesel generation (DG) and grid extension systems. The analysis reveals that the hybrid solar photovoltaics (PV)/Wind/battery system (consisting of 230 kW/178 kW/3,473 kWh) is the least-cost optimal solution. This optimal PV/wind/battery system achieves a levelized cost of energy (COE) of $0.284/kWh and a net present cost (NPC) of 3,460,456 over 20-year life span. Furthermore, it stands out as pollutant emission-free compared to the stand-alone diesel generator (DG) system, which emits pollutants equivalent to 33,102 kg/yr. The lifetime cost of the grid extension power supply amounts to $33,750,000, nearly $30 million more than the standalone system's price, resulting in significant cost savings of $30 million when opting for the hybrid system over extending the national utility grid. In addition, the sensitivity analysis considers the optimal system's response to changes in load consumption, PV, wind turbine, and battery capital costs, wind speed, and global horizontal irradiance (GHI). The results confirm that off-grid hybrid solar/wind/battery power generation is a technically and economically viable option for the case study area of Ferfer Kebele. Overall, this research offers a solution to Ethiopia's electricity access challenge, presenting a financially feasible and environmentally friendly option for rural electrification, while also providing valuable insights into the system's sensitivity to various parameters. Keywords: HOMER Pro, hybrid solar and wind energy system, off-grid, modeling and optimal sizing, Ethiopia