Microgrid including dual mode microgrid inverter and load management method

A method of sequentially operating a microgrid in a grid parallel mode and in an island mode, comprising:

• during the grid parallel mode:
• providing grid power to a non-critical load via a grid power line electrically connected to the non-critical load, and to a critical load via the grid power line, a critical load line electrically connected to the critical load, and an automatic transfer switch (ATS) electrically connected to the grid power line and the critical load power line;
• and
• providing system power generated by a power system to the critical load via a system power line, the critical load line, and a bypass line that is electrically connected to the system power line and the critical power line, in parallel to the ATS;
• and
• during the island mode:
• providing the system power to the critical load via the system power line, the ATS, and the critical load power line, such that the system power is not provided to the non-critical load.