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This paper presents power-control strategies of a grid-connected hybrid generation system with versatile power transfer. The hybrid system is the combination of photovoltaic (PV) array, wind turbine, and battery storage via a common dc bus. Versatile power transfer was defined as multimodes of operation, including normal operation without use of battery, power dispatching, and power averaging, which enables grid- or user-friendly operation. A supervisory control regulates power generation of the individual components so as to enable the hybrid system to operate in the proposed modes of operation. The concept and principle of the hybrid system and its control were described. A simple technique using a low-pass filter was introduced for power averaging. A modified hysteresis-control strategy was applied in the battery converter. Modeling and simulations were based on an electromagnetic-transient-analysis program. A 30-kW hybrid inverter and its control system were developed. The simulation and experimental results were presented to evaluate the dynamic performance of the hybrid system under the proposed modes of operation.