Adding renewables to microgrids in the form of solar and wind power is an increasingly attractive option. The cost of solar and wind per kilowatt-hour is significantly lower than diesel. But because of the intermittency of renewables, diesel gensets are still needed to ensure the stability of the grid. Using standard power electronics, PV can contribute up to 25 percent of the power that would be generated by the diesel genset at any time. Adding dedicated software can increase the penetration of PV to around 50 percent. When an energy storage system (ESS) is added, an operator can maximize the contribution of renewables, increasing the penetration of PV power and allowing diesel-off operation. It is possible to realize fuel savings of 50 to 75 percent. Li-ion battery systems have emerged as the technology of choice for energy storage. This is due to their high energy density that enables significant levels of storage capacity to be packed into a relatively compact footprint. Li-ion ESSs are now able to store energy at the megawatt scale, and integrated containerized systems can be connected in parallel to deliver multiple megawatt-hour storage capacity.