Institutions of higher learning in South Africa are grappling with occasional power outages in lecture halls, leading to disruptions in academic activities and occasional loss of lecture hours. Therefore, this study presents a comprehensive evaluation of a grid-connected solar PV/Li-ion battery microgrid (μG) system aimed at maintaining a constant power supply to selected lecture halls at a university in the Western Cape, South Africa. The microgrid design, modelling, and simulations, conducted in the MATLAB/Simulink environment, include the solar PV, Li-ion battery, energy consumption of the lecture halls (load profile), boost converter, bidirectional converter, and grid. Using the detailed design, modelling, and simulation, the study evaluates the economic and environmental impacts of integrating μGs, focusing on enhancing energy reliability, reducing operational costs, and mitigating CO2 emissions. The results indicate that integrating the microgrid resulted in a significant 51% reduction in energy cost and a decrease in greenhouse gas emissions by 530 kgCO2e per hour. In Cases 2 and 4, where the battery supplied power, the annual battery degradation costs are 6.08% and 14.9% of the initial cost, respectively. The μG ensures an uninterrupted power supply and improves the overall reliability of the university’s energy infrastructure. It promotes environmental sustainability goals of zero emissions and maintains continuous academic activities during grid outages. Furthermore, it fosters a conducive learning environment, supports innovation and creativity in sustainable energy technologies, and sets a standard for other higher education institutions to integrate renewable energy-powered μGs.