With the ever increasing number of vehicles on road and the rise of the electric and automated vehicles, it is important to minimize the consumption of energy by each vehicle, regenerative braking is in wide use today, however, the research in the field of regenerative suspension is limited. The regenerative suspension has huge capabilities in power generation especially on third world roads having rather bumpy rides. A huge amounts of energy is wasted in shock absorbers due to friction. This study emphasizes on the implementation of the energy present in the suspension system by replacing the Shock Absorber with a Energy transfer system Involving Hydraulic cylinder, Hydraulic Motor and Dynamo. The energy which is usually lost as heat due to friction in conventional Suspension is used to drive a dynamo through Hydraulic System designed in this paper and electricity is generated.This approach involves design and simulation of regenerative suspension system with specialized hydraulic device and comparison of the system with regenerative suspension system involving Rack and Pinion.Electricity is generated by the Regenerative System and plot of the electricity generated with the speed of the vehicle is obtained using simulation. A marked Improvement is seen in the energy saved using this system as compared to simple Suspension system.