The increasing environmental impacts and limited nature of fossil fuels have accelerated the growth of renewable energy sources (RESS). This study addresses the challenges associated with combining renewable energy sources, such as wind, solar, and tidal energy, into power systems, and it focuses on the design and optimization of a hybrid renewable microgrid that uses battery energy storage systems (BESS) to balance supply and demand while considering issues related to battery degradation. Battery degradation is a crucial constraint within the optimization framework. A hybrid optimization technique combining the Firefly Algorithm and Particle Swarm Optimization (FA-PSO) is proposed to enhance system reliability, known as loss of load probability (LPSP), and minimize the net present cost (NPC) of the system. The results and statistical analysis reveal that the proposed hybrid method outperforms the common algorithms used in the literature like genetic algorithm (GA), particle swarm optimization (PSO), ant colony optimization (ACO), and firefly algorithm (FA). This work contributes to the literature by integrating tidal energy into renewable management and emphasizing realistic battery degradation considerations.