A power supply system that outputs AC power to an object to which power is to be supplied includes: a first power supply circuit including a DC battery string and an inverter and configured to output first AC power; a second power supply circuit including an AC battery string and configured to output second AC power; and a control device. In the first mode, power is transferred between the object and the second power supply circuit. In the second mode, power is transferred between the object and each of the first and second power supply circuits. The control device starts supplying the second AC power to the object in the first mode, and when a power supply current becomes larger than a first threshold, supply the first and second AC power to the object in the second mode.