In this paper enhanced control strategies for standalone microgrids based on solar photovoltaic systems (SVPAs) and diesel engine driven fixed speed synchronous generators, are presented. Single-phase d-q theory-based sliding mode controller for voltage source converter voltage source converter (VSC) is employed to mitigate harmonics, balance diesel generator (DG) current, and to inject the generated power by SVPA into local grid. To achieve fast dynamic response with zero steady-state error during transition, sliding mode controller for inner control loop is employed. To achieve maximum power point tracking (MPPT) from SVPA without using any MPPT method, a DC-DC buck boost converter supported by battery storage system is controlled using a new control strategy based on sliding mode control with boundary layer. In addition, modeling and detailed stability analysis are performed. The performance of the developed control strategies, are validate by simulation using MATLAB/Simulink and in real-time using hardware prototype.