Grid energy storage system for PV Applications is connected with three different power sources i.e. PV Array, Battery and the Grid. It is advisable to have Isolation between these three different sources to provide safety for the equipment. The configuration proposed in this paper provides the complete isolation between the three sources. A Power Balancing Control (PBC) for this configuration is proposed to operate the system in three different modes of operation. Control of a dual active bridge (DAB) based battery charger which provides a galvanic isolation between batteries and other sources is explained briefly. Various modes of operation of a Grid energy storage system are also presented in this paper. Hardware-In-Loop (HIL) Simulation is carried out to check the performance of the system and the PBC algorithm. Power circuit (comprises of inverter, dual active bridge based battery charger, grid, PV cell, batteries, contactors and switches) is simulated and the controller hardware and user interface panel are connected as HIL with the simulated power circuit through Real Time Digital Simulator (RTDS). HIL simulation results are presented to explain the control operation, steady state performance in different modes of operation and the dynamic response of the system.