This article proposes a distributed control architecture for distributed energy resources (DERs) that include photovoltaics (PVs) and battery energy storage systems (BESSs). The control architecture is based on the virtual clustering of DERs to provide power balance (minimizing the net load (generation load) in each cluster) in each cluster considering the state of charge of the BESS. First, the architecture designs a spectral clustering to develop optimal clusters based on the number of DERs that provide clusters with minimum power transfer between clusters. Then, an error-minimization-based optimal control architecture provides sufficient set points to the BESS intending to provide power balance. The novelty of the proposed clustering is that it provides a distributed dynamic model of the grid with measurements that are stable and scalable. The control approach not only provides an optimal set point for the BESS but also takes into account the state of charge and provides intercluster balance. This framework can also manage the local grid effectively as the distribution is dynamic considering the state of the BESS and the number of DERs. The distributed control objectives are efficient and scalable. The architecture is tested on the IEEE 123-bus system and the IEEE 8500-bus system and observed that the approach provides effective power balance and outperforms the existing methods.