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A new high power density and low cost Photovoltaic Power Conditioning System (PV PCS) with energy storage system is proposed. Its high power density and cost effectiveness can be achieved through the unification of the maximum power point tracker and battery charger/discharger. Despite of the reduced power stage, the proposed system can achieve the same performances of maximum power point tracking and battery charging/discharging as the conventional system. Especially, when the utility power failure happens, both photovoltaic and battery energies can be supplied to the load with only one power stage. Therefore, it features a simpler structure, less mass, lower cost, and fewer devices. Finally, to confirm the operation, validity, and features of the proposed system, theoretical analysis and experimental results from a single phase AC 220 Vrms/1.5 kW prototype are presented.