Energy storage devices are necessary to obtain stable utilization of renewable energy sources. When black-out occurs, distributed renewable power sources with energy storage devices can operate under standalone mode as uninterruptable power supply. This paper proposes a dynamic response analysis with small-signal modeling for the standalone operation of a photovoltaic power generation system that includes a bidirectional charger/discharger with a battery. Furthermore, it proposes a DC-link voltage controller design of the entire power conditioning system, using the storage current under standalone operation. The purpose of this controller is to guarantee the stable operation of the renewable source and the storage subsystem, with the power conversion of a very efficient bypass-type PCS. This paper presents the operating principle and design guidelines of the proposed scheme, along with performance analysis and simulation. Finally, a hardware prototype of 1-kW power conditioning system with an energy storage device is implemented, for experimental verification of the proposed converter system.