In general, a microgrid can operate in both the grid-connected mode and the islanded mode where the microgrid is interfaced to the main power system by a fast semiconductor switch called static switch, (SS). It is essential to protect a microgrid in both the grid-connected and the islanded modes of operation against all types of faults. The major issue arises in island operation with inverter-based sources. Inverter fault currents are limited by the ratings of the silicon devices to around 2 p.u. rated current. Fault currents in islanded inverter based microgrids may not have adequate magnitudes to use traditional overcurrent protection techniques. The philosophy for protection is to have the same protection strategies for both islanded and grid-connected operation. The static switch is designed to open for all faults.