**9. Conclusion**

The simulation results confirm that using a backup power source to support renewable energy reduces overall microgrid costs. For example, using a DG backup lowers the renewable energy penetration from 100 to 82%, but cuts the overall cost by more than a factor of two. However, the simulation results also indicate a clear benefit to mixing residential and commercial loads, such that the cost for satisfying the mixed load is less than the sum of the costs for the loads individually. Depending on the configuration, the cost for the mixed load is 3–8% less than the sum of the individual costs.

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Microgrid designs for building applications involve determining the best mix of building loads for optimizing energy delivery. The result of the modeling work presented here is that combining loads allow for a measure of control over the microgrid costs. This concept is important for moving toward 100% renewable energy penetration.
