The foremost issues of 21st century are challenging demand of electrical energy and to control the emission of Green House Gases (GHG) emissions. Renewable energy resources based sustainable microgrid emerges as one of the best feasible solution for future energy demand while considering zero carbon emission, fossil fuel independency, and enhanced reliability. In this paper, optimization and implementation of institutional based sustainable microgrid are discussed based on cost analysis, carbon emission, and availability of energy resources. Various microgrid topologies are considered for addressing the most ideal solution. The metrological data such as irradiance is acquired from solar satellite data of NASA (National Aero Space Agency) while the data for wind speed is taken from synergy enviro engineer’s site. HOMER® simulation tool is used for modelling and optimization purpose.