Abstract: The increase in demand of electricity consumption and concerns towards environmental issues has led the concept of hybrid renewable energy microgrids to meet both the needs simultaneously. Therefore, in this paper, the study and simulation of such microgrid is carried out along with consideration of the net present cost, capital expenditure, operating expenditure, annual energy cost and the emission of carbon dioxide of the system. For this purpose, the site and load profile of an institute is considered located in New Delhi. The optimization is carried out using HOMER PRO software. The most suitable system topology is considered which is able to meet the set objective function in paper. Sensitivity analysis is also performed on the proposed system. Furthermore, the proposed system configuration i.e., solar PV-battery microgrid is compared to traditional grid-only supply system.