Design strategies for achieving reliable, affordable, and clean electricity are crucial for energy sustainability. Attaining it requires managing the three core factors (TCF) of the energy trilemma (ET) to increase reliability (energy equity), minimize the levelized cost of electricity (LCOE) (energy equity), and avoid potential CO2 emission (environmental sustainability) simultaneously. This paper aims to present a design strategy for the hybrid energy system microgrid (HESM) model, consisting of a distributed rooftop solar PV (DRSP), battery, and diesel-generator to meet the increasing demand while balancing the TCF of the ET. The design strategy was applied in a cluster of 11 households in Gilutongan Island, Cebu, Philippines, where there is no open land space for a solar PV microgrid system. This study used PVSyst and HOMER Pro software to perform the techno-enviro-economic (TEE) analysis to select all feasible system configurations (FSCs). To identify the optimal FSC, a scoring mechanism that considers the LCOE based on the 5% household electricity expense limit, the 5% unmet load fraction, and the renewable penetration fraction was used. Results show that the optimal system requires an average of 32.2% excess energy from DRSP to balance the TCF of the ET based on the energy demand considered. Thus, planning when energy demand increases is vital to map the next appropriate steps toward sustainable energy transition. Overall, the obtained results can support project developers and policymakers to make informed decisions in balancing the ET from various trade-offs of energy systems.