The urge for Electrical Power is escalating regularly at an increased rate due to the internationalization and progression of civilization. However, proper economic consumption of additional energy produced from the Islanded Hybrid Microgrid System (IHMS) that has not been consumed by the load is a major challenge globally. To overcome the above mentioned summon, this research focuses on a multi-optimal combination of stand-alone IHMS for Tioman Motel located at Tioman Island, Malaysia with an efficient exertion of redundant energy. To avail of this excess energy efficiently, an electrical heater along with a storage tank has been designed concerning diversion load having proper energy management. Furthermore, the system design has adopted the improved hybrid optimization by genetic algorithms (IHOGA) software for profitable and practical analysis of the designated configuration. Moreover, the optimal size of every module has been tested and analyzed through MATLAB Simulink and stabilized the whole system by representing the values of 1297 and 15 096 kW have been determined as the approximated peak and average load per day for the Motel, respectively. Moreover, the optimized IHMS is comprehended of Photovoltaic (PV) cells, Diesel Generator, Wind Turbine, Battery, and Converter. Adjacent to this, the optimized system ensued in having a net present cost (NPC) of $19.77 million, Renewable Fraction (RF) of 23%, cost of energy (COE) of $0.175/kWh, CO2 of 1 726 825 kg/year and excess energy of 532.26MWh per annum. Whereas, the system involved with the diesel generator lead a COE of $0.315/kWh, CO2 of 6 213 353 kg/year and NPC of $22.12 million. Additionally, this design alone with diesel generator has a higher CO2 emission rate, COE and NPC compared to optimized IHMS. On the other hand, the amount of excess energy is effectively utilized with an electrical heater as a diversion load.