System has two operation modes, the unit-power control (UPC) mode and the feeder-flow control (FFC) mode, applied to hybrid system. When load is light, the UPC mode is selected. In UPC mode variation in load demands are compensated by the main grid because the hybrid source output is regulated to reference power. In FFC mode feeder flow is regulated to a constant power, the extra load demand is picked up by hybrid sources and hence feeder reference power must be known. The system can maximize the generated power when load is heavy and minimizes the load shedding area.The proposed operating strategies with flexible operation mode change always operates the photovoltaic array at maximum output power and battery in its high efficiency performance band, thus improving the performance of system operation, enhance system stability, decreasing the number of operating mode changes in the MATLAB Simulink environment.