This paper presents an optimization for hybrid PV/wind system based on loss of load probability (LLP) and system cost. This paper is divided into three main parts: optimization of PV array, wind turbine and battery, optimum PV array tilt angle and optimization of the inverter size. Firstly, the optimization performed is aimed to select the optimal capacities of the PV array and wind turbine that give minimum system cost. However, the optimization was done using a hybrid iterative/genetic algorithm. The iterative part of the proposed algorithm is applied to generate a set of possible configurations for the proposed system, while the genetic algorithm is applied to find the optimum configuration. Secondly, a model for optimizing the tilt angle of the PV array is presented based on the Liu and Jordan model. Finally, an iterative method for optimizing the inverter size in the proposed system is presented. The results showed that the optimum sizes of the PV array (C-A), wind turbine (C-s) and storage battery (C-B) are 1.1411, 0.7159, and 0.550, respectively, while the optimum inverter's size (Rs) is 1.37. Lastly, by applying the calculated monthly optimum tilt angle, the collected yield of the PV array is increased by 7.96%. (C) 2011 Elsevier B.V. All rights reserved.