This study provides a technical and financial analysis for the incorporation of a microgrid structure with a wind energy conversion system for producing electricity. This study’s primary aim is to provide solutions for issues that arise when isolated induction generators are employed with microgrids. A closed-loop smart electronic load controller is used to regulate the loads in the system that are supplied by the generation. A switched variable capacitor bank is used to supply reactive power initially during a voltage dip at varying winds and loads to sustain the voltage profile. Additionally, a simple voltage control loop-based controller for the generator side converter maintains the voltage at a steady level. Using HOMER software, an economic study of the suggested wind-based microgrid structure is also presented. A laboratory experimental setup is used to support the MATLAB/Simulink study of the proposed method and its control. The findings back the feasibility of implementing the suggested plan in grid-isolated regions for supplying critical loads.