This study evaluates the energy efficiency of an urban dairy farm in Tlemcen, Algeria, by assessing the feasibility of a grid-connected photovoltaic (PV)/wind hybrid energy system. Using HOMER and MATLAB software, the study explores the potential for replacing the farm's existing energy systems with a hybrid system integrated into a low-voltage electrical grid. The HOMER software determined the configuration that resulted in the lowest net present cost, energy cost in kWh, greenhouse gas emission mitigation, and renewable fraction (RF). The selected specifications of the renewable energy (RE) system components, power rates, and costs are based on the local market. The results indicate a net current cost of $106,117.90 and a levelized cost of energy of $0.0959/kWh, with a reduction in CO2 emissions by 594 kg/day. The system delivers 98 % RF with 4 kWh/m2/day medium solar radiation and 4 m/s wind speeds, and the ideal investment recovery takes 33 months. On the other hand, generation includes 933 kWh/year in grid buys and 42,488 kWh/year in sold-backs. The PV array generates 5457 kWh annually, the wind turbine produces 40,761 kWh/year, and an additional 939 kWh/year is purchased from the grid. Additionally, hybrid power systems in dairy farms reduce energy consumption by 90 % and increase milk production by 40 %, promoting sustainable agriculture. The findings highlight the importance of adopting RE systems in agricultural operations to achieve both economic and environmental sustainability.