An AC microgrid in collaboration with Battery Energy Storage Systems (BESSs) and PV systems suffers uncertainties in power flow. The State of Charge (SoC) of an operating BESS reduces with time, degrading the DC link voltage and inverter’s output frequency. The conventional control on P-f droop characteristics has limitations in control flexibility and for that, the proposed droop control is designed on P-δ droop characteristics to maintain frequency and power factor even in discharging mode of the battery. The BESS follows a secondary distributed coordination scheme where SoC balancing using an average consensus technique is used to equalise the battery unit power contribution. The control scheme of BESS introduces an advanced polynomial regression-based changeover technique that adaptively changes battery mode ( discharging to charging or vice versa) to maintain DC link voltage, avoiding voltage cutoff of the battery. For PV systems, the decentralised control scheme is designed to contribute power using its local controller and is effective, especially in communication failure conditions. The control architecture of BESS and PV units has been configured differently and tested on a CIGRE LV feeder using MATLAB simulation. To validate the control strategy in real-time, hardware is implemented on the single-bus distribution network. The selection of control coefficients is made by small-signal analysis.