Systems and methods are described herein for controlling the states of a microgrid module. The microgrid module includes transformers and/or power converters necessary for modifying the input AC or DC power sources to meet the required characteristics of the output power. The microgrid module further comprises a control software module installed on a microgrid computer. The control software module receives data associated with the operating state of the microgrid module. The control software module can access rules associated with each microgrid module operating state to determine whether the microgrid module must transition to a different operating state. If a transition is appropriate, the control software module can apply commands to transition the microgrid module to a different operating state. The control software module can continue to monitor the microgrid module to determine when another state transition is appropriate.