Majority of rural areas in India have already been electrified to foster the standards of living, leading to increase in the energy demand. This energy demand fulfilment is developing a stress on the existing power generation technologies. Decentralized generation employing hybrid renewable energy systems has emerged as an affordable and technically viable approach to overcome this stress of power system. Therefore, in this paper, a hybrid configuration of biomass-/PV-based hybrid renewable energy generation system integrated to the grid for the minimal cost of energy (MCOE) is designed. Advantage of exploiting available biomass for the energy generation over PV/grid hybrid configuration in terms of various economic aspects of the system has been primarily focused. An effective simulation study has been carried out on HOMER PRO (13.14.2) edition software under various realistic conditions.