Research is presented that investigates the potential for solar power generation with battery energy storage for reducing the effective cost of energy delivered to residential customers if real time pricing is present. A linear optimization approach is developed based upon a two-step process. In step one, given a specified solar array area and battery capacity, the optimal means to meet loads based upon grid power, solar power, and/or battery power is determined. This analysis considers an expected lifespan of the solar panel. With these results established, in the next step, the capital costs for the solar arrays and batteries are considered for each point (solar area and battery capacity) in the design space. Ultimately, the results illuminate the most cost effective means to provide power to customers for the chosen system.