Cost reduction is very critical in the pursuit of realizing more competitive clean and sustainable energy systems. In line with this goal a control method that enables minimization of the cost associated with performance and life time degradation of fuel cell and electrolyzer, and cost of battery replacement in PV/hydrogen standalone power systems is developed. The method uses the advantage of existing peak shaving battery to suppress short-term PV and load fluctuations while reducing impact on the cycle life of the battery itself. This is realized by diverting short-term cyclic charge/discharge events induced by PV/load power fluctuations to the upper band of the battery state of charge regime while operating the fuel cell and electrolyzer systems along stable (smooth) power curves. Comparative studies of the developed method with two other reference cases demonstrate that the proposed method fares better with respect to defined performance indices as fluctuation suppression rate and mean state of charge. Modeling of power electronics and design of controllers used in the study are also briefly discussed in Appendix A.