To maintain a dependable and sustainable power supply in a microgrid system, it is crucial to combine renewable energy sources with hybrid energy backup. To achieve maximum output power from solar source, a high gain DC-DC boost converter is managed using the dual Kalman filter based perturb and observe approach. A sliding mode current controller at a three phase inverter with an LC filter is intended to follow an undisturbed reference voltage. To effectively manage the power flow and optimize the utilization of available resources, a robust power management algorithm is required. The novel power management algorithm for a solo operated renewable distribution generation unit with hybrid energy backup in a microgrid is introduced. The algorithm aims to dynamically allocate power among various sources, storage systems, and loads, considering their characteristics and the overall system constraints. The algorithm utilizes sliding mode control techniques to regulate the current flow from the renewable generator and effectively manage the power allocation among different energy sources, storage systems, and loads.