This paper aims to focus on technical and economical analysis of small scale wind/solar hybrid system for domestic consumers. The analysis is carried out on HOMER II simulation software. Pakistan is one of those developing countries which are encountered with severe energy crises. The purpose of this paper is to introduce a technically and economically feasible system to meet the domestic consumer’s demand, as well as contribute to the central grid. HOMER Energy software is used to analyze different systems and to obtain the most reliable and feasible system for the customer. Simulation was carried out to find an economically and technically feasible system. Sensitivity analysis was carried out with hub height, PV De-rating factor, PV life, Wind turbine life. Change in hub height drastically affected energy production and economic prospect as the main factors of the system. Implementing such type of small hybrid systems on domestic level can be truly helpful to overcome energy shortage.