A new low cost high power density photovoltaic power conditioning system (PV PCS) with an energy storage system is proposed in this paper. Its high power density and cost effectiveness can be achieved through the unification of the maximum power point tracker and the battery charger/discharger. Despite the reduced power stage, the proposed system can achieve the same performance in terms of maximum power point tracking and battery charging/discharging as the conventional system. When a utility power failure happens, the proposed system cannot perform maximum power point tracking at the UPS mode. However, the predetermined battery voltage near the maximum power point of the PV array can effectively generate a reasonable PV power even at the UPS mode. 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, a theoretical analysis and experimental results from a single phase AC 220Vrms/1.5kW prototype are presented.