Both centralized and distributed energy storage systems offer unique benefits and face distinct challenges. To fully leverage sustainable technology, understanding the nuanced differences and complementary roles of both storage paradigms is essential. Centralized energy storage system (CESS) concentrates power in one. Household energy storage system is a new type of hybrid system for energy acquisition, storage and use, which is a combination of batteries, hybrid inverters and photovoltaic panels, with lithium battery storage on the basis of traditional photovoltaic grid-connected power generation system.