This paper used a Vanadium Redox flow Battery (VRB) as the storage battery and designed a two-stage topology of a VRB energy storage system in which a phase-shifted full bridge dc-dc converter and three-phase inverter were used, considering the low terminal voltage of the VRB. Following this, a model of the VRB was simplified, according to the operational characteristics of the VRB in this designed topology of a VRB energy storage system (ESS). By using the simplified equivalent model of the VRB, the control parameters of the ESS were designed. For effectively estimating the state of charge (SOC) of the VRB, a traditional method for providing the SOC estimation was simplified, and a simple and effective SOC estimation method was proposed in this paper. Finally, to illustrate the proper design of the VRB ESS and the proposed SOC estimation method, a corresponding simulation was designed by Simulink. The test results have demonstrated that this proposed SOC estimation method is feasible and effective for indicating the SOC of a VRB and the proper design of this VRB ESS is very reasonable for VRB applications.