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This paper proposes a novel optimization strategy for hybrid-renewable energy systems in microgrids. The multi-objective optimization approach is formulated for a PV-wind-diesel-battery hybrid system. Its main objectives are to minimize the levelized cost of energy (LCOE) and loss of power supply probability (LPSP) whilst maximizing the use of renewable energy sources (RES). The proposed optimization strategy combines the Taguchi method with a novel fuzzy decision-maker-based multi-objective optimization algorithm. It implements, a) an energy management strategy to optimize the use of the energy sources, b) a Taguchi method to determine the upper bounds of the model's decision variables, c) a multi-objective moth flame optimization algorithm to optimize the size of the renewable energy sources, and d) a fuzzy decision-making approach to obtain the best Pareto front. The proposed strategy was implemented to optimize the design of a hybrid renewable energy system based on three different scenarios consisting of 10, 15, and 20 residential houses located in Sønderborg, a town in the Region of Southern Denmark. The results of the proposed model in terms of loss of power supply probability and levelized cost of energy for the scenarios I, II, and III are [0.224, 0.754], [0.313, 0.612], and [0.368, 0.547] respectively. In addition, the optimal design of the hybrid renewable-based microgrid system for scenarios I, II, and III are [PV: 32 kW, AD: 4.86, WT: 6], [PV: 36 kW, AD: 4.73, WT: 7], and [PV: 47 kW, AD: 5, WT: 7], respectively. The effectiveness of the proposed multi-objective optimization algorithm (MOMFO) in solving the optimization problem was examined and the results were further compared with those of the Non-Dominated Sorting Algorithm II(NSGA-II), Multi-Objective Particle Swarm Optimization (MOPSO), and Multi-Objective Social Engineering Optimizer (MOSEO). [ABSTRACT FROM AUTHOR]