Renewable energy sources (RES) are becoming an important part of energy continuity for today's electrical power grid, since RES are intermittent and unstable. Energy storage technologies are the only solution for this energy sustainability problem. In this study, a new Smart Energy Management Algorithm (SEMA) is proposed for Hybrid Energy Storage System (HESS) supplied from 3-phase 4-wire grid connected photovoltaic (PV) power system. HESS consisting of battery and ultra-capacitor energy storage units is used for energy sustainability from solar PV power generation system. Several different operation cases in HESS have been analyzed and experimentally tested by using the proposed SEMA. In experimental tests, load status of one sunny day and PV power profile have been created and tested dynamically by using SEMA and some of the test results in eight different operation modes are given in this paper. The battery group is charged with 1320W power by the system and remaining energy is transferred to the grid with 5% current harmonic via the inverter in one of the operation modes. The HESS is the most effective energy storage system due to its high power density, fast response, and high efficiency. The proposed system has been verified simulations results and experimental tests. (C) 2016 Elsevier B.V. All rights reserved.