Abstract: St Martin`s is one of the most beautiful Tourist Islands in Bangladesh where grid connected electric system for the inhabitants will not be possible to establish even in future. Diesel, Kerosene and wood are the main fuels for fulfilling the energy demand. Solar and Wind resources are the hybrid options for the Island. HOMER, a software for optimization of renewable based hybrid systems, has been used to find out the best technically viable renewable based energy efficient system for different numbers of households-1, 10, 20, 30, 40 and 50. It shows that per unit (KWh) cost of energy varies from 48 to 19 taka.