ABSTRACT The optimal allocation of sources considering voltage-dependent load models is essential as the power consumption of the loads is sensitive to voltage magnitude. In this paper, optimal allocation of microgrid system with cogeneration units, renewable energy sources (RES), shunt capacitors and heat boiler are determined for constant, residential, industrial, commercial and mixed load models. The cost, emission, energy loss, voltage deviation and voltage stability values for each load model is determined using particle swarm optimisation (PSO) integrated fuzzy max–min approach while the uncertainties in RES are taken into account. Results demonstrate that the cost, energy loss and voltage deviation values are maximum for constant power (CP) load model compared with other load models. Furthermore, the system with constant impedance (CZ) load achieves maximum loading capability than with other types of constant loads. The proposed method is validated on 33-bus grid-connected microgrid system with all the load models.