Abstract-Hybrid systems, which are composed of combinations of diesel generators, battery energy storage system and renewable energy resources such as photovoltaic, are outlined as a recommended approach for off grid power supply options for remote areas applications. Since these systems are not connected to an infinite source of energy, they must be well designed and controlled to satisfy the demand load. This study presents an efficient battery management strategy for the charging and discharging of the batteries in a hybrid renewable energy systems by controlling the energy flow between different components of the system. In order to simulate the developed battery management strategy, the components of the hybrid system are studied and modeled using mathematical models. During modeling of the battery storage system, the effects of aging and capacity degradation were taken into consideration. The simulation of the strategy was based on a case study, where it is validated to be functional. Finally, the optimization of the strategy has been done by working on its critical parameters.