A residential energy storage system is a technology that allows homeowners to store electricity generated from renewable energy sources, like solar panels or wind turbines, or from the grid during off-peak hours when electricity rates are lower. The primary purpose of these systems is to provide backup power during power outages, reduce reliance on the grid, and minimize energy costs by using stored energy during peak demand periods.

The most common type of residential energy storage system is a battery-based system, typically using lithium-ion batteries. These systems can be connected to the home's electrical system and work in conjunction with solar panels or other renewable energy sources. Homeowners can use the stored energy during periods of high electricity demand, at night when solar panels are not generating power, or when grid electricity is not available.