With the penetration of distributed solar photovoltaic (PV) generations, problems of degraded power quality and voltage oscillations are caused by unpredictable solar energy in residential microgrid. To alleviate such problems, the employment of distributed battery energy storage (BES) has been proposed and widely studied. However, with the present low renewable feed-in tariffs in many countries, microgrid users are discouraged to install expensive BES if they are not allowed to make energy-trading with the BES. In this paper, a residential microgrid power market is proposed to encourage the energy-trading of users with BES. As excessive energy-trading can exacerbate rather than alleviating the afore-mentioned problems associated with intermittent solar energy, a dissipativity-based distributed control approach is developed to coordinate individual users to achieve desirable microgrid-wide performance.