This paper proposes an enhanced three step design framework for microgrids designed with fixed capacity shortages (CS) that optimizes cost using load prioritization, battery thresholds and predicted solar data in the design phase instead of operational phase to reduce capital expenditure. This is achieved through reduction in battery size. The framework uses HOMER to model microgrids that are cost optimized for a given CS and installation location. As the first step of the redesign, load prioritization is used to resize the system into a new configuration, termed as Default System Size (DSS). The battery size in DSS is subsequently optimized over second and third stages of design. The second stage, Battery Threshold Management (BTM) uses efficiencies brought about by setting battery thresholds using load information for a 24-hour autonomy. In the third step — Prediction Management (PM), the operational efficiency brought about by solar generation prediction data is incorporated into the design framework. The proposed framework is validated using 6 individual microgrids set in different rural Indian locations.