Microgrids are emerging as feasible solutions to handle local energy systems. Several factors influence the development of such systems, such as technical, economic, social, legal, and regulatory issues. These important aspects need to be addressed to design appropriate microscale projects that take into consideration adequate technology without underestimating local characteristics. This article aims to propose a framework design for microgrid optimization using technical, social, and economic analysis. The framework is presented through a small island case study that shows each step of the method. As a contribution, this work provides a multi-objective optimization framework with different criteria consideration, such as the inhabitants’ cost of living and inter-cultural aspects, instead of traditional technical and economic analysis. The results show the applicability of the proposed framework showing better alternatives when compared with actual or future improvements in the study case scenario.