RenewableEnergy Resources are intermittent in nature and hence Energy Storage System(ESS) with bidirectional flow capability can be incorporated to the Microgrid to smoothen the load profile. The main objective of the paper is to perform an analysis of the Microgrid with a hybrid combination of Photovoltaic, Wind and Battery Storage and to study the impact of harmonics on the above system with variation in generation.The configuration is tested using MATLAB/ SIMULINK platform and it is seen that the change in generation is compensated by the battery management system at the point of common couplingand hence harmonics is reduced for the system when battery is connected.