Amidst a growing global focus on sustainable energy, this study investigates the underutilization of renewable resources in the southern region of Saudi Arabia, with a specific emphasis on the Najran Secondary Industrial Institute (NSII). This research presents an in-depth analysis of installing a hybrid microgrid (MG) system on the roofs of NSII buildings, exploring six cases with varying tilt and azimuth angles. The study innovatively integrates architectural design and system administration, a novel approach for this location, and benchmarks the optimal angles against Hybrid Optimization of Multiple Energy Resources (HOMER) software defaults. The proposed system consists of solar photovoltaic (PV) panels, a battery storage system (BSS), a converter, a diesel generator (DG), and a grid. The selected model balances technological and economic viability with environmental considerations, ensuring a reliable power supply within the NSII’s roof area constraints. An extensive sensitivity analysis evaluates the system’s resilience across different scenarios. The current system, which is grid-only, has an estimated Net Present Cost (NPC) of about USD 7.02M and emits 1.81M kg/yr of CO₂. The findings point to installing a microgrid with a 20.97° tilt and 50° azimuth angle as optimal, demonstrating 54.69% lower NPC and 92% lower CO₂ emissions, along with zero kWh/year unmet electrical load when applying the resilience assessments. This outcome highlights Saudi Arabia’s southern region’s renewable energy potential, aligning with national mega-projects and energy initiatives.