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We introduced a stochastic microgrid planning model to determine the optimal capacity and combination of distributed energy resources (DERs) for a microgrid system. The proposed model minimizes the total cost during the planning horizon, including the cost of capital for DER investment as well as the cost of supplying the load. The cost savings, realized by employing local resources and selling the excess power to the main grid, should recover the relatively high amount of capital expenditure for installation of DERs in order to economically justify the deployment of a microgrid project. Price and load duration curves are employed instead of chronological curves to reduce prediction errors. Reduced error would guarantee a more accurate solution to the planning problem. The duration curves show great applicability to the planning problem and guarantee a substantial error reduction for longer prediction periods …