Integrating renewable energy technologies in a single system is becoming more reliable to meet electrical demand of remote locations. Here, integration and the optimal use of various available energy resources in a stand-alone microgrid are investigated. An integrated renewable energy system (IRES) approach has been proposed and analyzed using homer software. Seven scenarios with different combinations of energy sources and storage systems have been investigated based on their levelized cost of energy (LCOE) supply and net present cost (NPC). The proposed IRES, which includes photovoltaic (PV), wind, and biogas, gives the least LCOE as $0.207/kW h without any policy intervention. This LCOE reduces to $0.12/kW h with policy intervention and consideration of carbon abetment cost. Moreover, sensitivity analysis has been carried out with variation in load, solar radiation, and wind speed. The NPC is found to be most sensitive to the variation of load and least sensitive to the variation of wind speed.