With a focus of reducing emission due to power production from fossil fuels, emphasis on renewable energy based resources are gaining more importance in recent years. Photovoltaic power generation systems with battery backup has the need to use a battery backup as due to the intermittent nature of the solar energy. A framework based on Markov Decision Process (MDP) to schedule the battery has been presented in this work with the battery degradation modeled. The objective is to reduce the overall cost of the power production. The algorithm is also equipped with solar and load forecasting based on regression and time series model respectively. The battery degradation modeling is based on the battery chemistry for which an equivalent mathematical model is created and incorporated inside the MDP algorithm. The discussed control algorithm is tested on a system comprising of a grid, a photovoltaic generation, local loads and a battery energy storage system.