ABSTRACTMicrogrids are a viable substitute for traditional power systems because they may deliver cleaner, more dependable, affordable power with fewer losses. However, the microgrid's performance is impacted by the variable nature of renewable energy sources. Battery storage is a crucial component of microgrid planning since it defines the system's techno‐economic feasibility. A standalone rural microgrid is designed in the current study, employing three distinct battery types: lithium‐ion, lead acid, and zinc‐bromine flow. The suggested microgrid's techno‐economic analysis employs three distinct dispatch mechanisms, that is, cycle charging, load flow, and complete dispatch. The case study of the suggested framework is carried out in Lucknow (India). The system comprises PV/battery/wind energy system/diesel and battery. The simulation results suggest that the optimal system with the least electrification cost is 0.113 $/kWh using complete dispatch strategies and a zinc‐bromine battery. It has 206 kWh zinc‐bromine flow batteries, a 10 kW converter, a 20 kW PV, a 13‐kW diesel generator, and a Combined dispatch strategy. The system's net present cost per unit cost of energy is $40 275 and 0.113 $/kWh for the chosen region, respectively. Compared to the other two battery technologies for hybrid systems, the zinc‐bromine flow battery technology is also shown to be the most environmentally friendly. Among the three battery technologies available, zinc‐bromine flow is best used in a particular location's hybridized operation.