Present energy demands are supplied by fossil fuel. It has negative impact on environment, therefore the renewable sources are the best solution for energy supplies. PV array and VSI can employed in distributed manner to collect energy from solar irradiation. It can design at small scale according to site requirement. Collection of distributed generators build microgrid. Microgrid is able to supply power to local area, and it can supply power to the main grid or receive power from the main grid. Main issue with microgrid is power regulation. Communication based system is able to regulate microgrid power, but it is suffered from single point failure. VSI can control through PWM technique, but its performance is not compatible with system. Droop Control can control system parameter and improve system performance, and it control each VSI individually. In faulty condition controller cut off only faulty unit from system. Model is design and simulated in MATLAB/Simulink 2017a and results are discussed.