This paper determines bow the value of customer-sited PV can be increased with battery storage by enhancing the load management and outage protection attributes of PV. Case studies in San Jose, CA and Long Island, NY for residential and commercial PV applications are used for a quantitative illustration of storage value enhancement. Results indicate that: (1) a small amount of storage for local load control and a larger amount of storage for emergency load protection significantly increases the value of distributed PV to the customer; (2) the value of PV combined with emergency storage exceeds the sum of the value of these options implemented separately; and (3) there is a potential opportunity to use dispersed PV + storage to enhance grid security (capturing this value, however, will require regulatory and policy changes). (c) 2006 Elsevier Ltd. All rights reserved.