Continued reductions in air pollution and greenhouse gas (GHG) emissions are crucial in megacities like Tehran, Iran, as they pose serious threats to both people's health and the environment. Reducing energy use through renewable energy projects will result in the mitigation of GHG emissions. Hence, this study was designed to assess the use of renewable energy resources to provide the energy services for a residential building. The specific objective of this article is to select a hybrid renewable energy system that can meet the energy demand of a 5‐story residential building in Tehran. The energy consumption of the building is calculated using DesignBuilder software. Then, HOMER software is applied to propose an economically feasible solar‐wind hybrid system that can meet the energy demand of the building. Initially, information required for HOMER and DesignBuilder software such as the building plan, details on electrical appliances used in the building, solar radiation, wind speed, and cost of renewable systems were collected. Subsequently, the energy performance of the building was simulated in DesignBuilder software and the results were applied to HOMER software. Finally, the hybrid systems proposed by HOMER were economically compared. Furthermore, the emissions produced by the proposed system were evaluated against a diesel only system to assess the amount of offset emissions. The comparison of the hybrid and diesel systems shows that utilization of hybrid systems can significantly reduce the magnitude of GHG emissions along with achieving cost saving. © 2019 American Institute of Chemical Engineers Environ Prog, 38:e13146, 2019