In South Korea, the existing diesel generators are being replaced with renewable energy sources (RESs) in several stand-alone microgrids. However, their reliability and stability are not still guaranteed by fluctuations of the system caused by RESs, arising from unpredictable changes in environmental factors. Moreover, since the inertia that is originally provided by the diesel synchronous generators is reduced, the overall system becomes highly sensitive to frequency variations. As a result, the installation of RESs must be well planned while considering the upper limit of their installed capacity. In this paper, a new method for evaluating the maximum penetration capacity of photovoltaic (PV) generators to ensure the stable operation of a microgrid is proposed. For the analytical approach, two frequency stability indexes, which are the minimum instantaneous frequency and the quasi-steady-state (QSS) frequency after a disturbance, are used. The capacity of PV to be installed is limited by considering the characteristics of other generators. In addition, the efficiency of the energy storage system (ESS) is also analyzed to determine the optimal capacity of both PV and ESS. The effectiveness of the proposed method is firstly proven through the mathematical analysis. Then, case studies on a practical stand-alone microgrid in South Korea are carried out using a time-domain simulation based on the DIgSILENT PowerFactory® software.