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An efficient approach for the economic assessment of microgrid planning is proposed in this chapter. The microgrid cost saving, obtained by the deployment of local resources and selling the excess power to the main grid, is compared with the investment cost to exhibit the economic benefits. Using this model, the optimal mix of distributed energy resources (DERs) to be installed in a microgrid is obtained. The proposed model considered a microgrid with multiple DERs and also multistep price functions. The computational complexity in the long‐term microgrid planning problem is alleviated by a few assumptions, which simplify the calculations. The proposed model is graphically represented, which offers a quick and efficient assessment of the microgrid installation's economic benefits. The model is proposed for microgrids employing a single DER and extended to microgrids with multiple DERs. A stochastic model is …